The Obama Tax Plan vs The FairTax
Jumpstart the economy
The current system~Multiple levels of taxation on savings, labor, investment, and productivity creates a disincentive to work, save, or invest thereby reducing real wages and job creation. Tax preparation costs divert $300 billion per year from productive activity in the economy.
The Obama Plan~Massive infrastructure rebuilding jobs program, financial assistance to banks, automakers, and other mortgage and financial institutions. Funds borrowed from foreign nations and creating larger taxpayer debt. Proposal does nothing to eliminate the drag on the economy caused by the current federal tax system.
The Fair Tax~Independent research confirms the powerful economic effects of the FairTax doubling the size of the economy in 10 years. Beacon Hill Institute predicts GDP 7.9% higher in the first year, 10.9% higher by year 10. Kotlikoff predicts the capital stock to be 12.8% higher by 2010 and 43.7% higher by 2030, leading to real wages 11.5% higher in 2030 than if the current tax system remains in place.