The Fair Tax is an interesting concept. If there are as many illegals and other undocumented workers as we're led to believe, then they would have to pay the same taxes on their expenditures as I pay on mine. Plus you would stop punishing productivity and you would encourage savings and investment. (Contrast this with the borrowing and spending that we're encouraging right now.
"We need to get credit flowing." Rinse, recycle, repeat... thank God for the ChiComs.)
I would only have a couple of concerns with the Fair Tax. I wonder about the effect that it may have on people who live on a fixed income and currently don't pay much (if any) income tax. I don't think anybody should go without paying taxes, but I can't fault the people who benefit under the current system if they would get hammered in a transition to a new system. I've heard ideas about refunds for the first however much in annual expenses and such, but this just sounds like another bureaucracy to me. Second is the fact that, unless the 16th Amendment were repealed in the process, we would be left open to repeating today's runaway taxing and spending at some point in the future.
As long as some people have more money than other people, there will be a sizable number who clamor for their "fair share," no matter how you arrange the taxation. There are people to this day who think that lower-income Americans somehow got screwed by the tax cuts in 2001 and 2003, even though the facts show
exactly the opposite. Now we have a system where roughly 40% of people pay no income tax at all, the poorest actually collect credits from taxes that someone else paid, and the wealthiest pay a larger portion of the federal take than they did before. Do you think people know this? Of course not. They think that $8 a week in their paychecks (
until it expires next year) is better than what they got under the former president. Do you think people knew that "tax cuts for 95% of working families" really meant temporary $400 rebates? Do you think people realize that the $600 checks we got last year were bigger? Of course not. (Given
the First Lady's spin on those $600 rebates, I must admit that the widespread celebration of this year's $400 is rather amusing to me.)
Even if you did repeal the 16th Amendment, the politicians would find a way to start playing their social engineering games. It would just take them a little more work to keep it constitutional.
If there is a way to restrain any growth in taxation constitutionally, then I think the Fair Tax could put us far ahead of the rest of the world in terms of economic growth. That's an awfully big 'if' though.