On Dec. 17, U.S. Sen. Saxby Chambliss, R-Ga., and U.S. Rep. Rob Woodall, R-Ga-7, sent a letter to the Joint Committee on Taxation to produce a revenue estimate of H.R. 25 and S. 13, the FairTax bill. According to a press release from Woodall's office, this estimate would allow the FairTax proposal to be considered during congressional negotiations for tax reform.
“The current tax code has become too burdensome and complex, and is filled with provisions that benefit only a few Americans at the expense of everyone else. That’s simply not right,” said Chambliss. “Now is the time to enact the FairTax, which would create a fairer, simpler tax code that allows every American the freedom to determine his or her own priorities and opportunities.”
“No matter what they do, honest, hardworking Americans are punished under our current tax code. Pass the FairTax, and we can unshackle America’s job creators and jump start this economy. Pass the FairTax, and we can reward all Americans who contribute to our economy—not just those who can afford the best tax lawyers and accountants,” Woodall said. “We, as a nation, can do better than relying on a tax code that picks winners and losers. Let’s level the playing field with the FairTax and restore more freedom to our economy, not more government.”
The FairTax collects taxes on spending instead of on income. It repeals all federal personal income taxes, corporate income taxes, payroll taxes, self-employment taxes, capital gains taxes and gift and estate taxes. At this time 23 percent is the suggested rate.
The National Center for Policy Assessment, however, says it won't work. It claims that at a 23 percent rate, someone paying more than that in income taxes now would be better off, but someone paying less would be worse off. The NCPA claims this system, again, is more beneficial to higher income earners.
What do you think? Is this the right time finally to have the FairTax solution come up for consideration? If so, why so - and if not, why not?