- No tax on business, corporate or otherwise. Businesses get to keep what they earn. This will allow them to pay more to their employees or build more capacity. It will allow all business to compete on the world wide stage.
- No tax on earnings. If you earn it the government doesn’t need to know how much you earned. The only incentive is to earn more. The more you earn the more you have to spend on goods and services or invest in new ideas. (That, by the way, is how an economy grows.)
- No social engineering via the tax code. The wealthy will no longer be paid by the rest of the taxpayers for purchasing home, electric cars, or putting solar panels on their roofs. If they want these things, they can buy them, they have enough money. Their purchases do not have to be subsidized by the rest of us.
- No tax on savings. If you earn it you should be able to save it, without penalty, for your retirement, for your children, or for your favorite charity.
Tax only what you spend. This is naturally progressive. Since the rich spend far more than the rest of us on goods, services and ‘frills’ they will automatically generate far more tax revenue.
A national sales tax, such as the Fair Tax does all of these things. So why isn’t it even being discussed?