The state of South Carolina introduced on March 30th a new bill to make the fair tax the primary revenue collector for the state, replacing all other taxes on individual and corporate incomes.
A similar bill for the fair tax was submitted to the state legislature last year, and our legislature in Washington has been putting the bill up for national debate since 1999. For South Carolina however, support for the bill has continued to grow each year, and the new bill introduced today has 63 co-sponsors.
What would the “Fair Tax” do? Basically, it would replace all taxes on individual and corporate income with a vastly-increased sales tax – thus spreading the tax burden around to more people and (ostensibly) encouraging economic growth by providing an incentive for savings and investment. – Fitsnews
The debate against the Fair Tax has always been that it places a new or increased tax burden on the poor. However, the Fair Tax has provisions to provide credits and in some cases, cash payments to supplement the increased cost of the sales tax for poor income citizens. Another negative was the potential for state or federal revenues to decrease with a national 'sales tax', but this does not take into account the vast number of government agencies and revenue departments that would be cut should a simple tax program be implemented for Americans.
South Carolina recognizes that the current tax structure destroys business and growth, and is an undue burden in the citizens of the state. Changing mandatory taxes from income to consumption would bring back liberty to workers, who would have the choice on how to spend their own money, save it for retirement, or invest in the prosperity of their government and local businesses.
With the State of Carolina introducing a new bill to institute a fair tax for their citizens, many other states around the country will be watching closely to see if the bill gets passed, and how it functions in replacing all other tax programs for individuals and corporate entities.
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