Toward the Fair Tax: Greenspan Endorses Move to Consumption Tax

Federal Reserve Chairman Alan Greenspan weighed in on tax reform yesterday, endorsing a move toward a consumption tax, while cautioning against rapid, wholesale change.

“Many economists believe that a consumption tax would be best from the perspective of promoting economic growth – particularly if one were designing a system from scratch – because a consumption tax is likely to favor saving and capital formation,” Mr. Greenspan said.

That should provide a boost to the Fair Tax bill introduced and championed by Georgia Congressman John Linder, a member of the House Ways and Means Committee. Congressman Linder (R-GA), reintroduced his personal consumption tax proposal, H.R. 25, also known as the “FairTax.” on the first day of the 109th Congress.

There are several Republican lawmakers who recognize that tax reform and social security reform need to be considered together. A total tax overhaul will take enormous political effort, but Linder sees good momentum in Congress. It’s time to get behind this commonsensical tax bill that lives up to its name—“fair tax.”

–James Jewell
Advertisements

About Jim Jewell

I am a writer and consultant on faith and public life, active for many years in management and communications in the evangelical community. I now work as the director of the nonprofit practice at The Valcort Group (www.valcort.com). Everything on this blog, however, is my personal opinion and is not read or approved before it is posted. Opinions, conclusions and other information expressed here do not necessarily reflect the views of Valcort.
This entry was posted in Jim Jewell, Philosophy, Politics and tagged , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s