Increasing the Tax Base - Summary

(The final entry in my series on Increasing the Tax Base. It, and the other entries can be read at Americans for Fair Taxation)

We started out talking about the wage-earner group. This is you and me. This is the group that have traditional jobs where Federal taxes are deducted from our paychecks each and every payday. Then we added the criminal element to the mix. Then added tourists, illegal immigrants, and finally teenagers.

Let’s consider this: the Fair Tax is a consumption tax. You pay a tax based on what you buy. Those who currently pay an income tax (the wage earner) will no longer pay taxes through a payroll deduction, but will pay taxes through their consumption as will the criminal, the tourist, the illegal immigrant, and the teenager. The one thing all five groups have in common is that they buy “stuff” whether it’s food, clothing, souvenirs, jewelry, CD’s, DVD’s, or whatever.

By including these four groups with the wage earner the tax base is dramatically broadened. The Democrats say they are concerned that a consumption tax will put an unduly heavy burden on the poor and the middle class. Adding these groups will ease the burden that we all currently bear.