Neal Boortz gets excited about the Fair (consumption) Tax.
It is amazing how many people don't like the idea because they don't think that the rich will be paying enough in taxes. It doesn't matter that paying taxes will be voluntary under the Fair Tax plan. It doesn't matter that nobody pays the retail sales tax on the basic necessities of life. It doesn't matter that lower income Americans will virtually get a free ride when their entire federal tax liability disappears, including Social Security and Medicare taxes.
Hmm. I'd much prefer a flat tax. The Fair Tax really would punish the poor (and it's not often I say that), who spend the bulk of their incomes on consumption. Some people would have more money to spend, but what about those with no accumulated wealth? The prices would be steeper for them, too. Maybe there's some economic argument I'm missing here.