One of the best tax reform proposals current being discussed in the United States is the FairTax proposal. You can read all about it at http://www.fairtax.org/. I am going to begin a series explaining how the FairTax can help address some of the current issues in today’s news.
One recent issue that has come up lately in this year’s Presidential election is school vouchers. Some have argued that school vouchers will improve education overall by enabling parent choice and forcing competition being public and private schools. On the other hand, opponents argue that school vouchers will weaken public schools who already have limited budgets by forcing them to compete at a regulatory disadvantage. Some private schools, particularly parochial schools, worry that the voucher system would force them to succumb to increase Federal regulation.
The FairTax proposal would greatly improve a family’s ability to afford a quality education of their own choosing. The FairTax would make the education costs close to half of today’s costs due to the fact the education expenditures are treated favorably under the FairTax system. Under current law, no deduction is given for payment of primary and secondary educational expenditures; however, under the FairTax system all education expenses would be made from pre-tax dollars. In addition, schools would no longer have income or payroll tax for their teachers and employees. This cost saving would be passed on to consumers of education in the form of lower tuition rates.
The FairTax would enable more families to afford private education if they so choose while at the same time allow private schools to remain free from increased government regulation. For more information, please visit The Impact of the Fair Tax on Education.