The 60 Second Update with

Grover Norquist

4. Where do you stand on the Flat Tax vs. Fair Tax debate and what would have to happen to enact this level of reform?

The goal of tax reform is to tax consumed income one time at one rate. This can be accomplished with a single rate income tax that exempts savings or a single rate sales tax.

They are economically the same thing. There is a political challenge for those advocating the retail sales tax or the “Fair Tax” and that is that the other team can focus on the creation of a new tax—the sales tax and imply that there would be an overall tax hike. This has happened in several key congressional and senatorial races.

Worse, think of a 65 year old taxpayer who just spent his working life paying the income tax. Now, you cheerfully tell him, we are going to change from the income tax to the retail sales tax. You will no longer pay income taxes—of course, as you are retiring you are not earning income. Instead, we will increase the tax on everything you buy in your retirement by 20% or 30%. Switching from an income tax to retail sales tax is no sweat for a 20 year old—he would pay the same over a lifetime either way. For those at or near retirement it will be painful. And older folks tend to vote.

  Question 5. What are the 3 most viable tax reforms?