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Friday, August 19, 2005

A National Sales Tax (via About Economics)

The Boortz/Linder book on the Fair Tax Proposal has been getting a lot of press lately. While I personally think the chance of a National Sales Tax replacing our current tax system is somewhere between slim and none, the book will probably have an impact on discussions about tax reform.

Mike Moffatt at About Economics has a very thorough and even-handed analysis of what might happen under a National Sales Tax. He addresses the following questions:
  1. What impact will the change have on consumer spending and the economy?
  2. Who wins and who loses under a national sales tax?
  3. Is such a scheme even feasible?
It's probably the best "plain language" analysis of the topic I've read yet.
Click here for the whole thing. It's worth a read - you'll probably hear more about the issue in the months to come.

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