#434 No Tax on Tips

Kamala Harris has picked up on Donald Trump’s idea of exempting tips from the income tax. Clearly, both candidates are trying to woo votes from workers in the service industries who rely on tips for their living. But what happens if you carry that idea even farther and stop taxing income altogether?

This week the FAIRtax Guys examine an article published on fairtax.org detailing what happens to the economy if we switch from taxing income to taxing consumption. Here’s a hint: The economy takes off like wildfire.