Keith Reynolds's Blog – June 2009 Archive (3)

An important thing to remember is that the fairtax replaces the income tax.

In order to understand why the fairtax taxes government consumption, we need to first understand how government collects taxes from government's spending under present income taxes. To simplify the discussion, imagine a group of people on an island. Every year, each chips in 22% of his income to pay for things important to the group.

One year the…

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One of the major reasons for tax reform is to simply the tax code and lessen the regulatory expenses it imposes to a more productive economy.



(cost of tax preparation)/(taxes revenues collected) = (efficiency of tax collecting). $350 billion to prepare taxes / $2,528 billion in “2008 federal receipts” = 13.845% inefficient



The fairtax has a low cost of collection. At about 90% less costly the Fairtax would only be about 1.4% inefficient leaving more money in the economy to… Continue

Government ineptness in tax policy and the effects on production while complicit doesn't excuse GM for it failing. GM's failing is a result of not just taxes punishing production that chase jobs out of America, but a chain of choices and compromises with an equally complicit union.



Unions can not vote them self's more value for work performed. Only a free market can ultimately determine wage, artificial constructs forced on a companies create inefficiencies in the market. Eventually… Continue