The United States desperately needs to restructure its tax system with the introduction of the so-called "fair tax," former Arkansas governor and GOP presidential candidate Mike Huckabee tells Newsmax TV.
"The fair tax doesn't punish productivity and reward irresponsibility like the current tax system does," Huckabee said Wednesday to Dennis Michael Lynch, guest host of "The Steve Malzberg Show."
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"It eliminates the IRS … because with a fair tax, you pay at the point at which you purchase something. You don't have anything taken out of your paycheck … income tax is zero, capital gains tax, tax on savings, on dividends, on inheritance — all zero."
The "fair tax" would impose a national sales tax on taxable property or services instead of current income and corporate income tax, employment and self-employment taxes, and estate and gift taxes. Proponents say it would be more transparent and simpler to execute.
"Businesses are able to make business decisions rather than making tax decisions. We'd bring manufacturing back to this country," Huckabee said.
"And it's no longer an advantage to be an illegal immigrant employee … [because] everybody's going to be paying the same tax."
"You're going to pay the consumption tax at the time you purchase anything new. If you buy something used, you're not … If you go to the store and buy something, 22 percent of the cost of that item in America is embedded tax."
Huckabee said Americans are ready for a new tax platform.
"It has 75 sponsors in the House ... [but] we'll never get the fair tax passed unless there is a president who is able to sell it, explain it, and articulate it," he said.
"One of the reasons that we have not gotten further with it is because there's never been a president that understood it."
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