Constitution Party Makes the Case against the "Fair Tax"

From the Constitution Party discussion forum:

This is a text version of a research brochure we produced in WA and was approved on 16 April 2011 by the state committee as our official statement on the subject. The brochure format is available for download and print at: http://www.constitutionpartyofwa.com/for...xFacts.pdf

« The Fair Tax is an unapportioned direct tax upon the people. As such, it is not authorized by the 1787 Constitution, nor is it authorized under the 16th Amendment which changed the original intent of the founding fathers by implementing a personal income tax. Without seeing any constitutional authority whatsoever to support the case in favor of the Fair Tax, the Constitution Party cannot support it.

« The Fair Tax does not guarantee a lower overall level of taxation. In fact, it could result in a higher level of taxation than is currently being paid by Americans. The initial rate of 23%, coupled with the approximately 9% sales tax currently being paid by Washington State residents, would make a 32% tax rate with no guarantee against Congress raising that rate in the future.

« The Fair Tax does not provide a simplified means of taxation. It replaces one complex system of taxation with another that is equally convoluted. The only real difference is that it moves taxation from being placed on a person's income to being placed on their expenses. It still requires an annual registration of household members and their Social Security numbers.

« The Fair Tax continues and expands the welfare state. The "Family Consumption Allowance" (FCA) is provided to every registered household, regardless of income. If implemented, it is estimated that the FCA would constitute the single largest entitlement program in American history.

« The Fair Tax expands the size of government. It eliminates one agency, the Internal Revenue Service, but creates multiple agencies to in its place, including an Excise Tax Bureau, Sales Tax Bureau, and state agencies, where the primary collecting of revenues would take place.

« The Fair Tax makes states the primary tax collection agency.

The distinction between state and federal government is further eroded by making states the primary collection agency. It also requires state taxing authorities to annually register every household and household member in the state, accelerating the current trend towards treating states as mere political subdivisions of the federal government thus putting the Constitutional principle of state sovereignty (the 10th Amendment) in even greater peril.