Just Say No To The “Fair” Tax

just-say-no-to-the-“fair”-tax

It’s that time of the campaign cycle again, when aspiring presidential candidates dash across the country to make their case to voters and put forward their plans on how to reform the tax code and the IRS. Many have a new national system in mind, dubbed the “Fair Tax.”

To put it simply, the proposed “Fair Tax” is a system where you only pay taxes on what you consume. It essentially eliminates the income and payroll taxes and replaces them with a national sales tax of approximately 23%. The notion behind this is that this puts every citizen on an even playing field.

The problem is that some got a head start, more specifically, wealthy individuals like the Patriotic Millionaires. The truth is that this proposed system of a “Fair Tax” actually amounts to an attack on middle and working class Americans. The reason behind this is that the middle and working class Americans tend to spend a larger percentage of their earnings on day-to-day necessities and save less of their income as a percentage when compared to the wealthiest Americans like the Patriotic Millionaires. Due to this savings disparity, the so-called “Fair Tax” would create a disproportionate and inefficient system, making it more apt to call it the Un-Fair Tax.

Additionally, the Fair Tax encourages middle class families who can’t afford a 23% tax to spend less on things such as food, water, clothing, and other necessities. Though Americans would not be taxed on their income, it doesn’t take away from the fact that lower and middle income Americans spend a larger percentage of their income on necessities, ultimately amounting to a tax increase for those who make the least and a huge tax break to – well, people like the Patriotic Millionaires.

Middle and lower class workers wouldn’t be putting capital back into the economy, simply because they wouldn’t be able to afford it. And the ones who can, the spending will not even come close to the economic stimulation from that of the other 99% of the population. With the discouraging of spending, companies will see a loss of capital and cut jobs in response. The most basic economics shows how this proposed tax is anything but fair.

This is a deceitful strategy set to convince the middle and working class of America to vote against their own economic interests. For too long, bad policies that have been branded with positive names like the “Fair Tax” have held appeal because there has been a coordinated effort to confuse and distract the public at large.

No more. Just say no to the “Fair” Tax.

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