Congressman John Linder and Libertarian radio talk show host Neal Boortz have collaborated on the writing of a book,The FairTax Book. I bought a copy last year. It lays out the case for ditching the current tax code and replacing the income tax with a national sales tax. The details of how it works are best left to the book but some of the main points are:
- Abolishes the IRS
- Closes all tax loopholes and brings fairness to taxation
- Maintains our current Social Security and Medicare benefits
- Brings transparency and accountability to tax policy
- Allows American products to compete fairly
- Reimburses the tax on purchases of basic necessities for everybody up to the poverty line, so effectively the poor don't pay.
- Enables retirees to keep their entire pension
- Enables workers to keep their entire paycheck
- Transfers power from Washington DC back to the people, where the Founding Fathers intended it to be (oh be still my libertarian heart).
I really urge you to get the book and educate yourself about this. Don't listen to those who criticize it after first rewriting it to say what it doesn't and then proceed to critique their strawman. Go to the sources. Again those are:
FairTax Groups and
The FairTax Book