'Tis the season to abolish the IRS
If you check out Amazon's business bestseller page, you'll spot an as-yet-unpublished volume on the so-called fair tax leading the pack. Even if you're not a tax policy wonk, you may have heard the term. And you likely heard it from Republican presidential contender Mike Huckabee, who wants to implement such a plan.
Fair tax proponents want to eliminate the IRS and the income tax. They want to replace them with a nationwide sales tax of about 23%. The advantages of the tax, supporters say, is that it's much simpler and won't discourage saving. Not so fast, say critics. The less fortunate among us spend more of our income, so the tax ends up being regressive, even if you include rebates for the poor. Still, with tax season in full swing, many Americans may invite a simpler tax system, even if it's not quite perfect.