Friday, January 22, 2010

Did You Khow?

“The FairTax makes the cost of government transparent. Today, small changes to the code shift tens of millions of dollars to particular taxpayers in ways not as visible as direct appropriations, but just as effective. With each special exemption, credit, deferral, deduction or definition that results, marginal tax rates are increased on everyone else. Complexity adds to the hidden nature of the taxes today. The FairTax is the simplest possible system, and that reinstates the principle that Americans have a right to understand the law to which they are subjected. When taxes are simple and transparent, they more readily reflect the cost of government to taxpayers, are less subject to lobbying and harder to raise. The same cannot be said for the flat tax or for business transfer taxes (BTTs), which while also based on consumption, perpetuate the myth that business entities do not pass the taxes forward.”

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