Reliable Source of Tax Revenue – Consumption vs Income

One question that first concerned me about the FairTax was what happens when people reduce their spending? Since the FairTax is collected on retail sales and services would it generate enough revenue to keep the federal government running when people cut back on their spending during tougher economic times? What I learned in educating myself regarding the FairTax is that spending is actually a more reliable source of revenue for the federal government than is income.

During good economic times lots of people have jobs and everyone spends. But, when times get tough fewer people have jobs. Those who lose their job or are downsized pay less or no income taxes. However, everyone still spends even if they are spending less. And, by collecting the tax at the point of retail sales and service those visiting the U.S. from other countries are contributing to its tax base.

Our Country is in the midst of some pretty turbulent economic times, and the answer from many in Washington is simply to raise income taxes on U.S. citizens. But, imagine what would happen if every visitor to our Country were also paying taxes, every undocumented worker were paying taxes, every person in underground economies was paying taxes with each purchase. The FairTax is not about reducing tax revenue, or even reducing taxes. It’s about spreading the tax base fairly and evenly, and making our tax system transparent and responsible.

The common refrain for several years has been, “It’s a good idea, but it will never happen.” The FairTax is a good idea, and it’s an idea whose time has come. Please investigate the idea of the FairTax. If it makes sense to you, educate yourself on the legislative bill, H.R. 25. And finally, take steps to help effectuate its passage into law. It can happen; it will happen, but will it happen in time to arrest the crumbling of our republic?

Jack Goodman ‘gets’ FairTax

Jack Goodman is another popular candidate for the Missouri District 7 Congressional seat, so I decided to take a look at his position on the FairTax plan.

The Web site for Mr. Goodman’s candidacy, www.JackGoodman.org, does not specifically address the issue of tax reform. Nor have I seen his position on tax reform stated in any printed materials. So, I made a call to the number listed on the Web site and asked. I was told that Mr. Goodman does indeed support the FairTax plan, and that if elected he would not only support it but would work to promote it as a U.S. Congressman.

In an interview conducted by KY3 News on July 19, 2010, Mr. Goodman had this to say when asked about his view of the FairTax initiative:
“I support the FairTax with minor modification and think the economic potential is tremendous, especially if we are able to pass a federal version.  In 2009, I was the Senate handler for Missouri’s version of the FairTax. The FairTax is transparent, eliminating the hidden layers of imbedded taxation in the retail price of products.  It also forces those who currently evade taxation to pay their share, such as drug dealers, illegal aliens and those in organized crime.  The Fair Tax would also be a huge incentive to bring manufacturing jobs back to America.”

While I would have liked to see a more demonstrative statement of his support of the FairTax plan in his candidacy materials I have to conclude that Jack Goodman is certainly worthy of consideration for the Missouri District 7 seat. I’ll leave you to evaluate his position on other issues, but as for the FairTax plan I believe he, ‘gets it.’