The Fair Tax

Paper Summary:

The paper relates that the "Fair Tax" means doing away with taxes such as Social Security and Payroll taxes and imposing a consumption tax on retail goods in order to increase peoples' opportunity to save and invest. The paper examines the perspective of those in support of and those opposed to this system. The paper discusses how opponents claim that paychecks would be smaller because businesses would have to cut wages in order to support such a drastic change in the tax system. The paper looks at the assertion that the burden on low and middle class individuals and families will increase.

From the Paper:

"The "Fair Tax" is the idea that doing away with taxes such as Social Security and Payroll taxes and imposing consumption tax on retail goods would increase peoples' opportunity to save and invest. The Fair Tax Plan was first presented by the group called the Americans for Fair Taxation, that imply that instituting such a tax would simplify the tax code. They also say that this type of taxing system would spark tremendous economic growth. According to Neal Boortz and Republican Congressman John Linder of Georgia, "individuals would be better of following a switch to a national sales tax in part because they would pocket 100% of their paycheck" (Linder & Boortz, 2006). Americans would pay federal taxes on purchased items."

Sample of Sources Used:

• Regnier, Pat. 2005. (MONEY finds flaw in Fair Tax bestseller) http://money.cnn.com/2005/09/06/pf/taxes/fairtax/index.htm
• Regnier, Pat. 2005. (Just how fair is the Fair Tax) http://money.cnn.com/2005/09/06/pf/taxes/consumptiontax_0510/index.htm
• Mitchell, Ph.D., Daniel J. 2005. (Russia's Flat-Tax Miracle) Jhttp://www.heritage.org/press/commentary/ed032403.cfm?renderforprint=1
• Flassbeck, Von Heiner. 2005. (Flache Steuer oder platte Ideologie) http://www.nechdenkseiten.de/cms/front_content
• Boortz, Neal and Linder, John. 2005. (The Fair Tax Book) New York: ReganBooks.

More papers on The Fair Tax:

• Term Paper # 100449 : "Globalization and the Fair Tax"
• Analytical Essay # 141334 : "The Fair Tax"
• Persuasive Essay # 142583 : "The Inherent Fairness of the Flat Tax System"

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