Tax reform
Replace income and other taxes with a single 18-22% point of sale ‘fair tax’.
Key components
- The end to personal income tax.
- A simple, single consumption tax on goods and services, coupled with the downsizing of government, retiring debt and redistributing unnecessary ‘super’ wealth.
- A massive downsizing of government tax and social welfare bureaucracies.
- Highly target-able for core national and local government services.
- A reduction in prices caused by business tax compliance laws.
- Redesigning education to make realizing the 17 opportunity characteristics possible.
- Re-focusing on local communities
Major effects and benefits
- Taxing personal labour, time, entrepreneurship and innovation is ended.
- Easy targeting of lower commodity and service costs for the poor.
- Eliminates complex tax codes and tax loopholes for large corporates.
- Raises incentives to work and take business risk.
- Paves the way to the re-introduction of ‘fraternal societies’ (See readings below).