Replace All Federal Taxes on Income with the Fair Tax Act , HR 25

New Tax Reform Report by CRS for 111th Congress

This is a brief summary of tax reform ideas prepared by the Congressional Research Service as reported today by NTU. The author states a comprehensive consumption tax base is smaller than a comprehensive income tax base therefore the rate would be higher. Of course, he neglects to mention the income tax base is anything but comprehensive so it is a mute statement.

http://tinyurl.com/afbfo7

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Permalink Reply by Dan Hunt on March 13, 2009 at 9:26pm

The author is missing another key point. A consumption based tax is broader as more people make purchases than earn an income. This becomes especially true during an economic downturn as we are currently experiencing when unemployment rises lessening the tax collection. Those who are unemployed however still make purchases so the tax would still be collected under a consumption based tax. Consequently The Fair Tax will not only have a broader tax base but also be more stable.

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Permalink Reply by Tony on March 13, 2009 at 11:24pm

Government studying government is insane.
I guarantee you that if a private entity did this same study it would come up with a completely different report.

Actually...I believe it already has!!