Louis R. Woodhill writes in an online article today that the Fair Tax would offer significant economic growth.  Governor Mike Huckabee supports the Fair Tax developed by leading economists.

Mike Huckabee’s recent surge in the polls has focused attention on the FairTax, which would replace personal income taxes, payroll taxes, capital gains taxes, corporate income taxes, and the death tax with a national retail sales tax.

There are many benefits to the FairTax, but the most important one is economic growth. By replacing taxes that burden capital investment with a tax that falls 100% on consumption, the FairTax would produce dramatically higher levels of investment, productivity, wages, and GDP growth. You would hear a “great sucking sound” as investment was pulled into the U.S. economy, not only from the rest of the world, but via the savings of our own people.

Former Governor Mike Huckabee is receiving some praise for his support of the Fair Tax.  A recent article in the New York Sun highlighted the fact that Huckabee is a leader on tax policy among Republican candidates.  Below is an excerpt from the story written by David Tuerck:

"The fact that he (Huckabee) is advocating a policy that is defensible on its merits, though outside the political mainstream, means that he is putting principle above political expediency — a sign of genuine character." David Tuerck, New York Sun

This brings us to what the candidates are saying now (about taxes) . Here Mr. Huckabee has the edge. Why? Because he has separated himself from the pack of leading candidates by endorsing the "FairTax," a proposed national sales tax that would take the place of almost all existing federal taxes.

There are only two questions on tax reform before the candidates in the coming election: First, do they want to reduce the burden of the existing tax code on productivity? And, second, can they promise that, if elected, they won't compromise on tax reform?

By embracing the FairTax, Mr. Huckabee has signaled that his answer to both questions is a resounding yes. And he also has done something rare for politicians: He has knowingly taken a principled stance, on which he could not waffle or compromise if nominated or elected, and which has been deemed by a number of influential pundits to be politically "unrealistic."

The FairTax gets this rap because it is a take-it-or-leave-it proposition. It is not just a vague or easily compromised promise to "flatten" the existing tax code or to "hold the line" on future taxes. It is a proposal that has been carefully crafted to raise just enough revenue to defray existing federal expenses while providing for a system of tax rebates aimed at making the tax code mildly progressive. And it removes the bias against saving that makes the existing tax code the huge burden on productivity that it is.

Voters may or may not like the FairTax. But they should understand that, by putting the FairTax in his platform, Mr. Huckabee has given them something on which they can depend, should he be elected.

This is what puts him above the rest of the field. The fact that he is advocating a policy that is defensible on its merits, though outside the political mainstream, means that he is putting principle above political expediency — a sign of genuine character.