A Hard Look At The Fair Tax
by Hank Adler - November 22nd, 2007 - Townhall.com
This presentation is intended to review and raise issues with respect to Federal legislative proposal H.R. 25 (109th): Fair Tax Act of 2007, the “Fair Tax”. Because the title of the proposed legislation prejudices the discussion, this presentation refers to this proposed legislation as H.R. 25.
H.R. 25 – Conclusions
With all of its complexity, the current Internal Revenue Code is a more evenhanded approach to collecting necessary Federal revenues than H.R. 25. This is not to say that the author believes the current Internal Revenue Code is the right long term answer for the United States; it is to say that H.R. 25 is not the right long term answer.
This article is an analysis of the H.R. 25 law. It sums up most of the concerns of those who are opposed to the issue, and appears to do it with logic adopted by generally conservative economists. At first blush, the idea of a 30% federal sales tax would seem to assure a major collapse in our economy.
However I wish I could find out a little more about the writer Hank Adler other than that he is an associate professor at Chapman University. The implication is that he is a conservative or libertarian of some flavor since he is writing in Townhall.com. Townhall does not usually provide a forum for liberals and progressives unless they identify them as such. Chapman University is in a very conservative area of California, Orange County, but it is also a leading university in film studies, which is certainly not a conservative field. The point is to understand what bias Hank Adler might be subject to. The whole concept is so complex that a reasoned case can be made for either side. It takes some time to know what is really true and understanding motivations of a writer can help to look for any bias that exists.
I have long supported the concept of radical change in our government to fix some of the problems of our society. The question really becomes whether this is the direction to go. No tax is free from economically driven response that counters the intended goals. The 30% advantage being offered to those outside of our nation in buying our productive efforts cannot begin to be a benign issue. A 30% tax on food does not seem rationale either.
According to Adler, H.R. 25 does not seem to be at all the kind of tax that flat tax proponents think would be an improvement. This article attacks the idea. Can anyone provide a supportive article on the concept?