Regret the Error

Embarrassingly, we have now failed twice to describe accurately the Fair Tax plan endorsed by Mike Huckabee. This would abolish all federal income and payroll-based taxes and replace them with a national sales tax of 23%. To ease the pain of higher prices, all Americans, even Bill Gates, would receive an annual “prebate” determined only by their family size (not by their income, as we suggested). The size of the prebate would be set so as to ensure that a family at the poverty level which spent all its income would end up paying no net federal tax at all. There are plenty of good reasons to oppose this plan, but none to misrepresent it. Our apologies. Link

Previous correction here.