Campaign 2016: Mike Huckabee pushes national sales tax plan (FairTax) to drive economic growth by 6%.
As campaign season continues on, candidates that are falling off the leaders are starting to attack other candidates and promote actual policy. At the Iowa State Fair, former Arkansas governor Mike Huckabee stated, "I believe we can get it (economic growth) to 6 or higher with a fair tax. I'm convinced." Mr. Huckabee added "I guarantee you we will goose the economy if you bring $11 trillion of working capital back to this country."
Mr. Huckabee has just 6% support of Iowa Republicans in the latest CNN poll. The FairTax is light on details, but basically would replace the current tax system with a flat national sales tax of 23%. It would include a "prebate" which is an "advance refund" at the beginning of each month so that purchases made up to the poverty level are tax-free.
The FairTax would abolish the IRS and eliminate payroll taxes. But it doesn't explain how the state and national taxes combined would affect purchases and the overall market for high-ticket items. Nor does it address if the higher sales tax would drive a new underground cash economy.