Income Tax Vs. Consumption tax

Our tax system is a mess. Admittedly our government needs a revenue stream to fund the operation of the United States. We rely on our government to provide Defense, infrastructure, and other functions "for the common good". There has to be a saner, more even-handed method than our current hodge-podge system of Individual Income (48%), Corporate Income (10%), Payroll (34%), Excise (4%) and Other miscellaneous taxes (4%). source: GPOaccess.gov

Everybody feels like they pay too much while others don't pay their "fair" share. Personally, I don't like income & payroll taxes. My money is taken before I even see it. And I don't have any real say in the matter. Being pretty thrifty, I don't buy what I don't need & I "recycle" by buying used - cars, houses, equipment, whatever. I like yard sales. That said, it's pretty easy to figure out that I prefer sales/consumption taxes. I'd prefer to pay my "fair" share when I decide to buy new goods and services, not when I earn my living. The consumption tax encourages saving & investment, and leads to greater participation in an "ownership society".

The Fair Tax Act (FairTax.org) is currently making the rounds in Washington as HR 25 and S 1493. The FairTax Book, a new book explaining the Fair Tax plan is being promoted by it's authors, radio talkshow host Neil Boortz & Congressman John Linder. Perhaps President Bush will make room in his Domestic Agenda and aggressively push for replacing the current twisted tax system, replete with arcane language with a simple consumption tax. As noted by Jan Larson, "The president made tax reform one of the main objectives for his second term. He has vowed to reform the tax code, to make it “pro-growth, simple and easy to understand, and fair to all.”" ~LINK~

I encourage you to read the information available at FairTax.org, buy a copy of The FairTax Book and contact your Senators & Representatives to encourage them to support the Fair Tax Act.