Fair Tax Deconstructed
Another one for the so-called “Fair Taxers” to chew on…
Whatever the rate, critics say, a steep federal retail tax, piled on top of existing state sales taxes, would encourage widespread illegal tax evasion, black market transactions and other forms of cheating, creating a cycle that would require even higher tax rates.
“The main weakness of the FairTax is its comprehensiveness,†said Dale W. Jorgenson, an economist at Harvard who opposes the plan but whose research into problems with the current system is sometimes cited by supporters. “It tries to roll everything into one tax, which simply can’t carry all that weight.â€
No, it can’t. Do we need to change the tax structure? Yes. Is the “Fair Tax” the answer? No
Tom Redburn - On the Economy - Election 2008 - Politics - New York Times