Fair Tax Nation

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

Pawlenty's new tax plan vs. The Fair Tax

Tim Pawlenty has just announced a new economic proposal for his campaign.  As a fiscally conservative voter, I find the plan refreshing!  However, as a Fair Tax supporter, I feel as if I am being shorted.  I'm going to attempt to break his plan down and compare each individual part to the Fair Tax.


The main points of Pawlenty's tax plan is as follows:


1. Top business income tax rates would go from 35% to 15%


-One little secret that just about every Fair Tax supporter understands is that Businesses DO NOT pay income taxes.  Regardless of the tax rate, it is simply going to be passed on to the consumer via higher prices.  Therefore, while I like the fact that Pawlenty wants to reduce the business tax rate, it really needs to just be eliminated.  Moving from 35% to 15% makes me feel like I'm getting run over by a Ford Focus instead of an F-150.


2. The six individual tax brackets would be reduced to just two (10% and 25%)


-Great... This sounds like a movement closer to the  *shudder*..... Flat Tax.  Once again, better than it was before, but not exactly a step in the right direction.


3. No taxes on capital gains, interest, and dividends.


-Thank you Pawlenty!  You gave me something to celebrate in your plan!  This will be a great boom to the economy, and something taken right out of the Fair Tax.  Not only that, but it will completely eliminate the need for 401(k)s and IRAs.  It's ridiculous that we are limited on those things in the first place.  Not only that, but the options provided in many 401(k) plans are horrendous.  Kudos Tim!


4. Balanced budget amendment to the Constitution.





Either way, I see some good things in his plan and some bad things.  Hopefully some of the declared Fair Tax supporting Presidental candidates *cough*Cain*cough* come forward with better plans

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Comment by Jamie Wheeler WA on June 12, 2011 at 4:30am
Thanks for sharing and it DEFINATELY falls VERY short of the FairTax.  Sure how he will LISTEN at the Iowa Straw Poll and the debate as I'm sure the question will be put forth!

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