Mr. Woodall’s Fair Tax Plan

Our current incumbent congressman offers us more of the same rhetoric of the House Republican leadership.  Congressman Rob Woodall’s “cure-all” for that which has ever ailed us economically remains his “Fair Tax” bill previously championed by his mentor, John Linder.  The so-called “Fair Tax,” a plan to replace the federal income tax with a national sales tax, is little more than political “snake oil,” an unrealistic plan that would shift the tax burden more greatly to the shoulders of middle class Americans.  Even President George W. Bush’s Advisory Panel on Federal Tax Reform in November 2005 determined that Mr. Woodall’s national retail sales tax proposal was unworkable.

The former Libertarian Party nominee for the U. S. Senate from Georgia, noted tax attorney and CPA Allen Buckley, has analyzed Mr. Woodall’s “Fair Tax” plan.  Mr. Buckley has written extensively about the “Fair Tax” plan in an article in the BNA Daily Tax Report as well as in a book published in 2006 titled, “Why the Fair Tax is a Sham.”  Mr. Buckley’s analysis suggests that the “Fair Tax” is fundamentally flawed. The actual required tax rate would be roughly double what Mr. Woodall’s plan suggests, and would provide wealthy Americans with a huge tax break while most middle class and elderly homeowners would pay a much larger percentage of their income in taxes.

Mr. Woodall’s “Fair Tax” plan is the classic example of the old adage that “if it sounds too good to be true, it is too good to be true.”  More directly, the so-called “Fair Tax” is a lot of political “baloney.”