A Conversation with a FairTaxer

I used to write a good deal against the FairTax. A FairTax proponent recently came across my 2006 article for the Mises Institute titled “The Fraudulent Tax” and wrote me with a critique of some of the things I said in the article. He closed with a question that I answered, followed by some back and forth that some might find interesting. Below I begin with his question followed by my response, and so on.

FairTaxer: So, let me just ask – what system of taxation DO you favor, if not a consumption tax?

Vance: I favor none.

FairTaxer: And how exactly do you propose to pay for government?

Vance: Don’t need taxes for government. 95 percent of what the government does is unconstitutional.

FairTaxer: How do you pay for the military then?

Vance: Have you not seen any of my articles on the military? The vast majority of military spending is for offense, not defense. The military budget should be cut to the bone.

FairTaxer: Why so dodgy? At the end of the day, there are still public expense. How would you pay for them?

Vance: The government could perform its constitutional functions via land sales, a lottery, user fees, and donations. Don’t laugh. The Treasury Dept. keeps track of Americans who donate money to the government to reduce the federal debt.

FairTaxer: Not laughing at all. I am all for it.

Vance: That is good.

FairTaxer: You need to understand, though, the sales tax people are not your enemy. The enemy of my enemy is my…. Friend. Reserve your sharp your sharpest tongue for proponents of large govt.

Vance: I do, but those who advocate a revenue-neutral fair tax are putting their stamp of approval on the federal government spending trillions of dollars it should not be taking from the American people and spending.

My many articles on taxes can be seen here. Look for another one soon. In case you are wondering, Murray Rothbard and Frank Chodorov are my two favorite writers on taxation.

The Best of Laurence M. Vance