About this episode
The FairTax, on paper, sounds simple: just replace all major sources of the federal government’s revenue—the individual income tax, corporate income tax, estate and gift taxes, and payroll tax—with a national sales tax.
But when you pull back the curtains, this proposal leads to more questions than answers.
Alan Cole, senior economist, makes his Deduction debut to talk us through why this old idea is gaining attention this year. He breaks down what the FairTax shows us about the debate between income taxes versus consumption taxes, and why “simple solutions” appeal to so many policymakers for how best to tax an increasingly complex economy.
Links:
https://taxfoundation.org/fair-tax-national-sales-tax/
https://taxfoundation.org/fairtax-consumption-taxes/
https://taxfoundation.org/tax-basics/value-added-tax-vat/
Follow us!
https://twitter.com/TaxFoundation
https://twitter.com/deductionpod
https://twitter.com/AlanMCole
https://twitter.com/solisjesse
Follow us!
https://twitter.com/TaxFoundation
https://twitter.com/deductionpod
Support the show
Get every episode summarized
Each time The Deduction publishes, we email you a written briefing from the transcript — the topics, who appeared, and any specific claims, with the ad reads skipped.
Email me new episodesFree for 3 shows. No card needed.
Hosts & guests
No transcript yet
This episode has not been transcribed. Request it and it moves to the front of the queue.
More episodes
More from The Deduction
Going Bold: Paul Ryan & Kevin Brady on Tax Reform
The Deduction
Is America Financially Illiterate? The Numbers Are Alarming
The Deduction
You Might Owe Taxes in a State You Don’t Live In
The Deduction
One Year After "Liberation Day," Did Trump's Tariffs Deliver?
The Deduction