As the presidential primary season heats up, there have been changes in the candidates and to their tax plans. We decided to revisit where they stand on the FairTax and will launch a formal 2012 scorecard next week at www.fairtax.org/scorecard.
If you are able to meet a candidate, ask, “If the FairTax bill was on your desk as President, would you sign it?” Try to record the conversation and send their response to email@example.com.
What candidates favor the FairTax legislation?
Michelle Bachman: Favors – “I love the FairTax. If we were starting over from scratch, I would favor a national sales tax.” However, she has refused to co-sponsor HR 25 because she believes “we would end up with a dual tax, a national sales tax and an income tax.”
Herman Cain: Favors – He strongly supports the FairTax but advocates a gradual transition to it through his 999 plan which eliminates most federal taxes and combines a 9% individual flat tax with a 9% national sales tax.
Newt Gingrich: Neutral – Although briefed multiple times by FairTax experts he maintains “…the FairTax is a good idea but I’m not yet convinced it’s a doable idea…” He supports a dual system of the current tax code and an optional flat income tax which keeps payroll taxes and the IRS.
Jon Huntsman: Unknown – Supports removing loopholes and deductions and combing the income tax into three rates while eliminating capital gains taxes, dividends taxes and the AMT and lowering the corporate tax rate.
Gary Johnson: Favors – “The fair tax is leading my list” for tax code reform but also promotes simplification such as untaxing savings and investment while eliminating corporate income taxes.
Thaddeus McCotter: Unknown – Proposes to “Reform our tax system to reduce the burden on working families and small businesses by cutting taxes, while eliminating loopholes.”
President Barack Obama: Unknown – His economic team was briefed on the FairTax and he has stated a sales tax would be regressive.
Ron Paul: – Favors – “I’ll vote for the FairTax if it comes up because I have made a promise that I would do anything to get rid of the income tax and the IRS, and repeal the 16th amendment and that FairTax certainly moves it in that direction.”
Rick Perry: – Favors – “Another option would be to repeal the Sixteenth Amendment to the Constitution… altogether, and then pursue an alternative model of taxation such as a national sales tax or the Fair Tax.”
Mitt Romney: Neutral – Likes the idea of a consumption based tax but wants it to be structured in a way that it doesn’t provide a windfall for the wealthiest or burdens middle income Americans.
Rick Santorum: Unknown – Supports lower taxes in general and none on manufacturers.