Economists generally agree that a sales tax is better for the economy and job creation than income taxes. The FairTax (a sales tax) removes most taxes from the wholesale price of American produced goods and services which makes American products more competitive and will bring jobs back to the U.S.A.
The Fair Tax Act of 2013 was re-introduced on January 3rd to the U.S. House and garnered a record number of legislators to Cosponsor upon introduction. The 53 original Cosponsors included some previous Cosponsors and some new members. Two from Michigan, the 7th District’s Rep. Tim Walberg re-signed as a Cosponsor and the 1st District’s Rep. Dan Benishek became a Cosponsor for the first time.
The FairTax would have the 16th Amendment (which authorizes an income tax) abolished and replace the income based taxes and payroll deductions with a simple, transparent consumption (sales) tax on amounts over someone’s household Poverty level.
The Fair Tax Act is assigned to the Committee on Ways and Means which Michigan’s 4th District Rep. Dave Camp is Chairman.