McCain seems to have a talent for knowing what sells, even if it transcends party direction or consistent political ideology. By not endorsing the FairTax, is he losing his touch? Or maybe he is selling to the media – is he thinking that despite support from the electorate, the media will not like the FairTax?
Poster Jim Bennett offers these thoughts on McCain’s support of the Flat Tax:
I was disappointed in McCain’s speech May 15, 2008 in Columbus, Ohio, in which he endorsed the wrong tax reform plan. McCain, speaking about the Flat Tax, HR1040, claimed correctly that millions of taxpayers would file under a flat tax and save billions in the cost of preparing their returns. The Flat Tax does represent a vast improvement over today’s Byzantine code and has been implemented successfully in 16 foreign jurisdictions, in which former Soviet republics and satellites are strongly represented (Two more are about to adopt it, and three are actively considering it).
The weakness in the Flat Tax, however, is that it continues to be an income tax retaining the IRS. Congress, in increments, is certain to return it to today’s code that serves us poorly.
The Flat Tax has less popular support than the Fair Tax. It has one sponsor in the House, Michael Burges, R-TX26, and 8 co-sponsors (some of whom also are Fair Tax co-sponsors), all Republicans. The Fair Tax, by contrast, has one sponsor in the House and 69 co-sponsors, and can count at least one Democrat. There are other Democratic supporters in the House who have been discouraged by Speaker Nancy Pelosi from signing on as co-sponsors.
The Fair Tax, furthermore, can count several hundred thousand among its supporters throughout the country. The Flat Tax, championed by Steve Forbes, has a more limited following.
The National Association of Realtors opposes the Flat Tax because of the loss of the local property tax and mortgage interest deductions. The NAR does not oppose the Fair Tax – nor should it.
The choice by McCain of the Flat Tax is an unfortunate distraction and will be redressed over time.
On the same note, Julia Malone notes Linder’s concern with a Libertarian candidate endorsing the FairTax and the Republican candidate not endorsing it:
Republican Rep. John Linder is fretting aloud that Libertarian presidential candidate and fellow Georgian Bob Barr could draw enough votes from “fair tax†enthusiasts to tilt the outcome in a close state contest next November.
Linder, himself an ardent advocate of abolishing the IRS and replacing it with a form of national sales tax, said Tuesday that Barr’s support of this “fair tax†concept could win enough votes to affect the results in Michigan, Florida and even in Georgia.
The expected Democratic nominee Sen. Barack Obama “is going to turn out a helluva vote†in the normally safe Republican state of Georgia, Linder said.
He said he is contacting advisers of the presumptive GOP nominee, Sen. John McCain, to urge them, “Do not take this lightly.â€
Linder’s prescription for solving the problem is, not surprisingly, for McCain to embrace the fair tax idea too.