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47 Economists Laurence Kotlikoff and Sabine Jokisch reported the incentive to work and save would increase; by 2030, the economy's capital stock would increase.7 over the current system, output.4, and real wages.5.
Competitiveness overseas and at home.
"The Fair Tax Will Still Fail For All The Old Reasons".
16 The Beacon Hill Institute states that it would not matter, apart from transition issues, whether prices fall or risethe relative tax burden and tax rate remains the same.92 FairTax movement edit The creation of the FairTax began with a group of businessmen from Houston, Texas, who initially financed what has become the political advocacy group Americans For Fair Taxation (afft which has grown into a large tax reform movement.For families/households with more than 8 persons, add 4,160 to the annual consumption allowance for each additional person.25 on Housing and the Homebuilding Industry" (PDF).They state that replacing the current tax system with a consumption tax would not change the tax revenue generated from the underground economywhile illicit income is not taxed directly, spending of income from illicit activity results in business income and wages that are taxed."A response from Senator Obama on the Fair Tax Act ".52 While many economists and tax experts support a consumption tax, problems could arise with using a retail sales tax rather than a value added tax (VAT).The Existing Federal Tax System" (PDF).43 A 2006 study published in Tax Notes by the Beacon Hill Institute at Suffolk University and.Although no such requirement is included in the text of the legislation, Congressman John Linder has stated that the FairTax would be implemented as an inclusive tax, which would include the tax in the retail price, not added on at checkoutan item on the shelf.51 FairTax proponents argue that the proposal would provide tax burden visibility and reduce compliance and efficiency costs by 90, returning a large share of money to the productive economy.

House Committee on Ways and Means.
Citing evasion, Tim Worstall wrote in Forbes that Europes 20-25 consumption taxes simply would not work if they were a sales tax: thats why theyre all a VAT.
Proponents point out that a business is required to have a registered seller's certificate on file, and must keep complete records of all transactions for six years.Personal services such as health care, legal services, financial services, and auto repairs would be subject to the FairTax, as would renting apartments and other real property.Bush and his Secretary of the Treasury Henry.8 Absent the Internal Revenue Service, it would be more difficult for the states to maintain viable income tax systems.7 In aaa rental car discounts avis another study, they state the FairTax would offer the broadest ecco uk coupon code tax base (an increase of over 2 trillion which allows the FairTax to have a lower tax rate than current tax law.Kotlikoff, Laurence; Rapson, David (December 2005).In the 109th111th Congress, Representative Dan Boren has been the only Democrat to cosponsor the bill.The FairTax would be tax-free on mortgage interest (up to a basic interest rate) and donations, but some lawmakers have concerns about losing tax incentives on home ownership and charitable contributions.97 The FairTax received additional visibility as one of the issues in the 2008 presidential election.