The Dirty Little Secret about Tax Cuts

The dirty little secret the liberal types don't want you to know: the reason that the defecit isn't WORSE is thanks to the increased economic activity that lowered tax friction causes. Here's a nice (but slightly out of date) picture:



If only Bush wasn't spending $$ like water....

FairTax Talking Points

Washington, D.C. (June 8, 2006) - Representative John Linder (R-GA) this week before the House Republican Policy Committee, as part of a Tax Reform Panel that also included former U.S. Senator Connie Mack (R-FL) and Representatives Bob Goodlatte (R-VA), Phil English (R-PA), and Michael Burgess (R-TX), outlined and answered questions regarding his FairTax proposal, H.R. 25. The FairTax will repeal the current income tax system and replace it with a revenue neutral personal consumption tax.

In prepared testimony, Linder outlined eight key principles he believes Congress must consider when debating any fundamental tax reform proposal. These principles are:

1. Fairness: It must protect the poor and treat everyone else the same. No exemptions – no exclusions – no advantages.

2. Simplicity: It must be easy to understand for all Americans – no matter one’s education, occupation, or station in life.

3. Voluntary: It must not be coercive or intrusive.

4. Transparency: We should all know what the government costs. There must be no “hidden” taxes.

5. Border-Neutral: Our exports must be unburdened by any tax component in the price system, while imports carry the same tax burden at retail as our domestic competition.

6. Industry-Neutral: It must be neutral between businesses and industries.

7. Strengthens Social Security: Fundamental reform must address the long-term solvency of Social Security.

8. Manageable Transition Costs: It must not be costly or difficult to implement.

“I truly believe that the principles I have outlined cannot be compromised. My bill is the only tax bill that ensures all of these qualities are met and allows our booming economy to compete globally,” said Linder.

More . . .
http://www.theweekly.com/news/2006/June/08/FairTax.html

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For a nice overview of FairTax, view:
http://www.investing-news.com/artman/publish/article_1195.shtml