I am a big fan of efficiency and consequently am for the elimination of the U.S.’s egregious and cryptic income tax code. I really like the FairTax (HR 25 and Senate bill 1493) which calls for taxing spending rather than income. Basically, all income taxes would be eliminated and you would pay a fair tax on the goods and services you purchase. This is a great system for rewarding saving and investing, instead of consumption, while maintaining the same amount of revenue to fund our government.
Check out the FAQ for the FairTax. The FAQ does a great job of answering questions that come to mind when contemplating the FairTax and its ramifications, especially in regard to its fairness, implementation, and level of compliance that can be achieved.
“The FairTax is a non-partisan proposal (HR 25/S 1493) that abolishes all federal income taxes, including personal, estate, gift, capital gains, alternative minimum, corporate, Social Security, other payroll, and self-employment taxes, and replaces them all with one simple, visible, federal retail sales tax. The FairTax dramatically changes the basis for taxation by eliminating the root of the problem: Taxing income. The FairTax taxes us only on what we choose to spend, not on what we earn. It does not raise any more or less revenue; it is designed to be revenue neutral. The FairTax is a fair, efficient, and intelligent solution to the frustration and inequity of our current tax system.”
I e-mailed all the major presidential candidates requesting their support of the FairTax. You should too! We can save ~$250,000,000,000/year on compliance alone, i.e. tax return preparation and such. Let’s make April 15th just another day!