I liked the idea of the Fair Tax when I ran across it on the national level. It claims to be revenue neutral, meaning that things (government programs and the funding amounts for them) remain the same. Just the way in which the government gets it’s money changes. The Income Tax would be scrapped in favor of a larger (9.25%) sales tax or “consumption” tax. See link below for a previous post I wrote about my views. Since then I haven’t found any defects in the plan that would outweigh the benefits.
Michigan has a “fair tax” bill currently before the legislature. It is a clone of the national “fair tax” plan. The bill according to the site would charge 9.25% sales tax. Personal state income tax would no longer exist. Currently that averages over 4%. Again that revenue neutral concept comes into play. A big advantage for Michigan I feel would be the instant across the board tax breaks (none=0=nada business tax). Companies would quit leaving and start coming back to Michigan. Below a link to it.
From the site above I see Jack Hoogendyk is a cosponsor of the bill along with a lot of others.
Below a link to the actual corrections in bold to the existing laws.
A “fair tax calculator” NOTE THIS IS FOR THE FEDERAL “FAIR TAX PLAN”
When I filled out the calculator. It dawned on me that the poor people who don’t file now would have to file somehow in order to get the prebate. National and State. I wonder if someone has thought through the inevitable fraud issues. I’m thinking fraud similar to the dead people receiving welfare checks and SS checks that type of thing. Well I’ll keep digging. Maybe do some calling or emailing to Jack Hoogendyk for some clarification. Maybe Nick at Right Michigan would have some answers also. I’ll check.
Regards, Live Dangerously Be A Conservative
Edit. Made a search of Right Michigan and came up with a list of post Nick has made about the "fair tax" See my side bar under "Xtra Links For Current Posts".