Fairtax

Based on a comment I made to this Times article.

I’m a big fan of the FairTax proposal, my only challenge/question is around conversion.  None of what I’ve read suggested anything other than a cold turkey cut over..   Not being a big fan of such a drastic changes, I couldn’t support that.

As an alternative..  And considering FairTax is so (relatively) simple, it could be added to the existing system easily with a 1% rate to start.  Phase in the prebates as well, while reducing the legacy tax rates concurrently.

2 years at 1%, 2 years at 5%, then increase by 2.5% a year though 20%, and adjust yearly after that..

That’s roughly a 10 year phase in..  Gives all those folks currently working in the various tax related industries a bit of time to find other work.  Also gives the system some time to work itself out while the actual rate is low (1%).  Confidence in the system would also grow as lower income folks actually began to see the prebate checks come (possibly yearly at the 1% rate, quarterly at the 5% rate, and monthly at the 10% and up rates)

heck, the government could even give everyone an ATM/credit card for their respective prebate money.

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