Taking on Woodall & Linbeck
Hank has asked that we provide some critical input on the attached study prior to taking on Rob Woodall and Leo Linbeck.
The September 2006 Fairtax Rate study concluded that an inclusive sales tax rate of 23.82% would be revenue neutral. The study is fatally flawed for two reasons. (1) Including Government consumption in the base is inappropriate under our constitutional republic form of government, and (2) The failure to properly account for legal tax avoidance and illegal tax evasion. The following discussion explores both criticisms and addresses several related issues along the way that bear on my conclusion.
Give it a read and provide Hank some feedback.