I read an interesting editorial in this weekend’s Wall Street Journal titled Fair Tax, Flawed Tax. I have not read Neal Boortz’s The FairTax Book (affiliate link), which is a book about abolishing the IRS and the income tax and moving to a consumption tax. Boortz calls this a fair tax. In my opinion, it doesn’t seem fair. Why? Because the less money you make, the higher percentage of your income will be spent on consumption. In other words, it seems like a regressive tax, not a fair tax (for the record I’m not a fan of progressive taxation since it too is not fair).
Personally, I like the idea of a flat tax. I think it’s fair for everyone since everyone pays the same percentage regardless of income. I know, I know, I’m too simplistic!
UPDATE: For those who are interested, here’s Neal Boortz’s Response.