Prebate and enforcement probably would create a bigger bureaucracy than the IRS.The other solution is a prebate check to every single American at the beginning of each month based on a percentage of the poverty level. This leaves us with two options. The government sends out more than 300 million checks every month, or you have to file a tax return every month to let the government know who is in your family. When the government tried to pay one time checks of $250 only to military and social security retirees, they sent over 72,000 to inmates and dead people, and missed many of the people who should have actually gotten them. And you think the government could handle 300 million checks a month?
and doesn't remedy the situation.
They did a study in Arkansas showing Fairtax hurt everyone who made between 15,000 and 200,000.
Using a real rate, not the Phony rate FairyTax uses, it's even worse.
Independent scoring puts fairtax at 56/57%.
And Fairtax doesn't just tax Food,
Fairytax taxes RENT, Medical (Prescription/procedures), Utilities, Autos, Insurance, New Houses.... etc etc
The poor and low-middle/middle HAVE to spend virtually all their money to live.2. This whole idea that a consumption tax lets you decide what to pay because you don't pay taxes unless you spend the money is basic stupidity. The only way you can get out of paying the national sales tax is to not spend the money EVER. In that case, what is the point of having the money?
Which will then be taxed at at least Fairtaxes claimed 30% rate + State sales taxes. (and state inc taxes converted to sales taxes)
A real combined rate is probably 70%
Yes, possibly bigger than the IRS.
3. Consumption taxes will require businesses to file monthly tax returns that will include many complicated issues, including lump sum contracts, international sales, wholesaler v. resaler issues, non-profit sales, and of course my favorite, lump sum contracts to non-profits. The IRS will also need to perform regular audits to ensure that companies (especially small retailers) are not doing under the table cash sales. If anything the IRS will increase in size to handle the prebates and the monthly sales tax returns.
Good point. Those in retirement already and the Baby Boomers (those within 15 yrs of retirement) is no small demographic.4. People with savings that have already been taxed will face double taxation when we switch over to the new system.
5. The Real Independently scored 'Fairtax' rate is 56/57%. (not incl state sales tax)
6. It would create a giant underground economy. Sales go BLACK.
There's never been an incentive to cheat so easily, so often.
The needed rate goes yet higher.
For a discussion of this and other Top-Down-Scam taxes:
http://www.debatepolitics.com/econom...pay-taxes.html (The Truth about who can afford to pay Taxes)