The Case for Fair Tax

Last time, I lined out essentially what the Fair Tax system is: replacing the federal income tax with an across-the-board increase in sales tax. It would get up to twenty three percent, to be exact. Now I will explain why I believe the Fair Tax system might be the best alternative to the currently-used progressive tax system.

First and foremost: the Fair Tax is, well, fair. People are essentially responsible for paying their own taxes through their own consumption. The more you spend, the more you pay to Uncle Sam. Therefore, instead of taxing, and therefore disincentivizing, incomes, the government would then be taxing consumption across the board. Of course, people below the poverty line would more than likely be exempt from the changes. The tax also makes illegal immigrants pay taxes. This way, the Fair Tax system streamlines the tax process and makes the individual responsible for how much he pays to the government.

I believe that the Progressive Tax system punishes successful people and businesses. Considering that these people are, for the most part, the ones who own businesses and, therefore, hire people to give them jobs, the system might not be the best for the economy. Also in this system, it requires knowledge of one’s income in order to place them into tax brackets. Since illegal immigrants don’t seem to be getting in line for citizenship, Fair Tax would make them responsible for paying their taxes through consumption.

Additionally, since Fair Tax merely taxes consumption and not hard work, Fair Tax could theoretically prevent people from spending beyond their means. When consumption costs much more than it does today, people might be less likely to buy things they cannot afford and turn to their credit cards. This means that people might be forced to budget their expenses and make better financial decisions. In the end, businesses need only pay taxes for consumption instead of being punished for being successful.

Opponents of Fair Tax believe that this would lead to a decrease amount of income for the federal government in the form of taxes. While this fact is probably true, I believe the government needs to figure out how to spend taxpayers’ money more efficiently. Perhaps the Fair Tax would give the government the fresh start it needs in terms of figuring out efficient appropriation of funding.

In general, Fair Tax is controversial mainly because of its extreme change to the status quo. I believe a fear of such overhauling change is really behind the strong opposition to it. I believe Fair Tax is a great candidate for taxation reform.

Chris Buchheit

Chris Buchheit

Chris Buchheit was born under the hot Floridian sun during some year in the 1980s. There he studied school matters until moving to North Carolina in 1999. Possibly due to the fact that his mom had enough of him being inside all the time, he quickly got involved in community affairs via the Boy Scouts of America, where he learned the values of citizenship, morality, duty to God and country, and that the biggest kids get to boss around the smaller ones. Chris attained the rank of Eagle Scout in 2004, and still values the rank as one of his proudest achievements. Beginning in 2006, Chris began attending the University of North Carolina at Chapel Hill, where he quickly learned the value of basketball and poplar trees. Since attending UNC, Chris has been double majoring in Asian Studies, with a concentration in Chinese, and Political Science. When he isn’t slaving over his honors thesis, looking up a bunch of Chinese Characters, volunteering, or mindlessly browsing the same websites over and over, Chris enjoys writing short stories and novels. Much to his roommates’ annoyance, he also spends his free time learning to play the guitar. Above all else, though, Chris values God, his family, and his friends. For the future, Chris plans to apply to Georgetown to further his studies in Political Science, hopefully with a concentration on China. Pending acceptance into Georgetown, Chris would like to study while gaining professional experience in a government job in Washington DC.
Chris Buchheit

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