Bush describes a national sales tax as "interesting"

Fred Barnes suggested on the Beltway Boys that Bush was just floating the idea. That's probably right. A plan to replace the income tax with a consumption tax (H.R. 25) is supported by a large number of representatives. Its so much wiser to tax consumption over savings that its pretty much obvious as far as I am concerned. Kerry's comments reveal him either to be a staggering idiot, unaware of this pending legislation, or a lying demagogue who would prefer to scare voters rather than see the other side implement good policy. "John Kerry said Thursday that President Bush's musing about a national sales tax is an insult to financially struggling voters and would amount to "one of the largest tax increases on the middle class in American history."

Section 204 (& 302) provides for a monthly refund of $ 200 for everyone. Annually, that's $2400, or 26.7% of the poverty level. Given that the tax rate is 23%, its a tax exemption on the first 10,435 of spending with no taxation on savings, income, thereby advantaging work and savings, good things that they are. Today low income workers are taxed and get an annual refund. Under this plan, they'd get a monthly refund for what they spend. Frugal folks can avoid taxes until they spend.

In Federalist 21, Hamilton wrote, "It is a single advantage of taxes on articles of consumption, that they contain in their own nature a security against excess." Once again, Hamilton was right. He's easily on the short list of the most important founders. I'm reading the Chernow biography now.