The line in the sand has been drawn: a deadline has been set by those who would have us paying a FairTax. Come April 15th (a date which strikes fear in the hearts of procrastinating tax-payers across the United States), we may well know whether the FairTax will really happen and whether it will really stimulate the economy and "untax" the poor.
Personally, I'm kinda liking the idea of the FairTax. As frequent readers know, I'm a big fan of eliminating debt and I'm in the process of trying to do just that - and every penny that goes into ye olde checking account instead of to the IRS is a penny that my husband and I can allocate more effectively on our own. Since we're already making darn sure that we shop smart, I know that personally our tax burden would go down.
And as horrible as it may sound, I can't help but wonder if the apparent increase in pocket money for Jane Citizen might well and truly stimulate the economy more effectively than a check that will be run through within a shopping trip or two. While Jane and Joe Citizen may think they are making more, and they may shiver once or twice at the seeming raise in prices at the corner market (or the electronics store for that ginormous plasma screen TV they plan to throw on the credit card), I think it will come out in the wash. I'm no financial planner or economics whiz, but if there's one thing people stereotypically do when they get a pay raise, it's shop. And shop. And SHOP.
And perhaps this would be the ripe opportunity for those of us who spend our hard-earned pennies eliminating debt. We'd have a lot more pennies in our pockets, and we could focus our efforts on still shopping wisely (sales, coupons, and rebates will surely still abound) while the other folks not only stimulate the economy with their buying, but also save the banks' butts as they whip out their credit cards again. And who knows? Maybe it'd get people paying their mortgages more easily too. And who wouldn't win there?
Educate me: are you for or against the FairTax? Why? For me, personally, it looks like a good thing, as Martha would say. But then again, I'm no shopping hound so all I see is an opportunity to make money. What say you? Is the Fair Tax really fair? How would it affect your business?
And if you work for the IRS, do you think it'd mean layoffs in your field? What about CPAs, H&R Block employees, and the other folks who make a living working overtime during income tax return season?
Comment Preview