Honzo August 26th, 2005

Dave is of the opinion that the National Sales Tax plan dubbed “The
Fair Tax” is regressive and unrealistic, hard on the poor and middle
classes, is a huge tax break to the upper class¹.
After doing alot of reading over the last few months on the topic, I
have to disagree with him. Lets look more closely at some of this
points and compare them with some of the research I have been reading.

Dave’s points of contentions are as follows:

1. A large sales tax increase would drive more industries into the black market and create more under-the-table deals.
2. The rate of 23% is misleading
3. The rate of 23% is way too low.
4. Non-profits would not be funded at the same levels
5. A NST would be a regressive tax policy.

These are very valid concerns. However, are they sound? That is what
I want to take a look at. In the coming days, weeks, posts; I will be
taking a look at each of Dave’s points.

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