Fair Tax: Part III

The long and short term effects of the Fair Tax also show great promise. I never thought I would borrow Keyensian rhetoric, but we may eat a little inflation at first in order to stop long term destructive spending. In the long term, you would have people prioritizing their purchases and a stronger dollar. Also, businesses would stay in or move to an area where property and income taxes do not apply. Remember, having cultivating property and earning an income are positive economic activities, spending is a quick fix to a problem (I am hungry therefore I will buy food). We should not tax the positive activity.

Additionally, consider the how that might change us from a consumer economy to a producing economy. Gone would be the days of the US being the economic engine that keeps our competitors (India, China, EU) going. We can weaponize this Fair Tax by applying it like a medicine to the pressing issues of our country: Environmental Initiatives, Terror, Health Care, and Education.

Without forcing them, how do you get people to invest in Green products? You simply do not tax them. You would go to the store and see energy efficient light bulbs cheaper than traditional bulbs; it makes for an easy choice. Windmills, rainwater collecting tubs, and solar panels are just a few items that could be discounted. You could even measure the pros and cons of fuel efficient cars. Certainly, the discounting of wind power and alternative fuels would deal a crushing blow to our reliance on Middle East oil. I would even be in favor of the State using the shores of the Great Lakes to harvest wind energy in a taste full and useful manner (they could also serve a light houses for our miles of coast line). They could be self sustaining as area energy providers could rent them from the state to tie into their electric grid.