Kinsley Picks Apart “Fair Tax” Plans
Michael Kinsley does an excellent job of pointing out the problems with the so-called “fair tax” which is being pushed by Mike Huckabee (as well as Fred Thompson’s tax plan). I hope some of my fellow bloggers take the time to read it thoughtfully.
I was once an advocate of the flat tax, but don’t see any way around the issues Kinsley raises. Including this point, which gets at the heart of what I was arguing earlier this week,
It would certainly be simple, at least for the typical citizen, who wouldn’t have to file any forms at all. But it would not be simple to administer. (”SEC. 205. BAD DEBT CREDIT. Any person who has experienced a bad debt (this does not include unpaid invoices) is entitled to a credit which is equal to the tax rate times [the amount of the bad debt divided by (1 minus the tax rate)].”) Got that? And this is from the “plain English summary,” which you can open at almost any random page and find rich grist for opposition mills. The discussion of “taxation of hobbies” (Section 701) alone fairly cries out for misrepresentation.
Simplicity in presentation is not simplicity in administration.
The problems with Thompson’s and Huckabee’s tax plans. - By Michael Kinsley - Slate Magazine