All the sudden one of my posts from over a year ago is getting a lot of attention!
Over the weekend I noticed that a post I did on the Forbes Flat Tax Plan was receiving some new comments. Most of the comments are from people suggesting something called The Fair Tax Book by Neal Boortz.
I have not yet read the book. Have any of you? (If somebody from the Boortz Camp is reading this, if you send me a book I’ll read it and post about it.)
From what I can tell, it is a consumption tax rather than an income tax. I’m not sure what consumption is taxed, but it seems to me that those with lower incomes, who spend most of what they make, would be paying a bigger percentage of their income in taxes than someone who has greater income but doesn’t have to spend it all on consumption. If this is true, it doesn’t seem “fair” to me. I think that’s why I’m a fan of a modified flat tax.
I don’t like Steve Forbes’ Flat Tax plan because he doesn’t tax dividends or capital gains, which heavily favors the wealthy. I say make it a flat tax but tax ALL income.