Friday, December 28, 2007
Bruce Bartlett has published Why the FairTax Won't Work, 117 Tax Notes 1241 (Dec. 24, 2007). Here is the abstract:
In this article, he criticizes the FairTax, a tax reform proposal supported by former Arkansas Gov. Mike Huckabee, a candidate for the Republican presidential nomination. The proposal alleges that a 23 percent national retail sales tax collected by the states would be sufficient to replace all federal taxes. That would allow for abolition of the IRS and other benefits, supporters claim.
Bartlett argues that the FairTax is deeply flawed and has been systematically misrepresented by its supporters. Quite apart from the fact that there is zero chance that Congress would ever enact it, it is clear, writes Bartlett, that the FairTax simply would not work at all if it were tried, which is why no country has ever attempted to collect all its revenue from a retail sales tax.