Fair Tax

What is fair tax?
“There's only one kind of tax that would please everybody -- one that nobody but the other guy has to pay”.
-- Earl Wilson
Introduction
A fair tax system might contain two basic ingredients: First, each person should pay his fair share of the costs of government; second, the government should only tax real value, not fiat money inflation.
What constitutes fairness in taxation? In the first place, the proceeds should only be used to pay legitimate costs incurred by a government. In the second place, since every person receives theoretical benefits from the functions of the state so every person should contribute on a relatively similar scale as his neighbor. A cardinal rule in taxation should require those people who benefit from government activities to pay.
This essay will explore the importance in a fair tax and the elements (criterions of a fair tax) that constitutes equitable taxation. The essay will then conclude after analyzing the distributional eff...