The Fair Tax

by John Linder

We have heard the promise of fundamental tax reform for about two years now. It seems that there is some agreement on reducing the numbers of deductions and reducing some tax rates. You will recall that we did that in 1986 and 25 years later it cannot be noticed.

It was disclosed in the last year that the IRS harassed conservative groups and disclosed the confidential information of individuals. It strikes me that this is the perfect opportunity to change the entire way we fund the government. It is time to say goodbye to the IRS.

We should take this opportunity to abolish the IRS and begin to collect the necessary funds to run the government by taxing consumption instead of income.

There are two approaches to taxing income. The value added tax is used by many nations. It taxes each addition of value to a product in its manufacturing. Milton Friedman once said that it was the most efficient way to raise taxes and the easiest way to increase the size of government.

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Read the whole article here: http://townhall.com/columnists/johnlinder/2014/01/15/the-fair-tax-n1779063/page/full