For those on this forum, over the past ten years or so, that have argued the benefits of the so-called Fair-tax, then what you are arguing for is what the international socialists call a BIG (Basic Income Guaranty) which is a basic income check for everybody.
The idea of the Fair-tax (I call it the Fart Tax as it taxes those who have retired living on income from investments that already have been taxed where the IRA’s were to be withdrawn with no taxes) is that it is a consumption tax, at quite a high rate, in order to fund the government. Everyone would get a basic “prebate” every month to offset basic needs. Since that would be figured in there would be no tax exemptions for essential items such as food and clothing. The understanding is “rich” people and the “Boomers” stole from the people for so long so now we will take them to the cleaners.
Many have argued it as a conservative idea but in reality it is a socialist plan to establish a BIG.
The other thing, does anybody wish to argue that the laws will not eradicate all income taxing schemes? What does one do with generation skipping trusts? What about international consumption? Will the USA require every nation in the world to remit a tax on spending by US citizens?
One other thing; how many people here wish the government know exactly where you live so to be able to send you a monthly check (most likely it would be EBT but ten years ago it was a check)? And, how much corruption will there be regarding family size, dependents, etc?
Does anybody think we have immigration (invasion) issues now? Just wait until all you have to do is to arrive on the doorstep of USA and get a check equal to the top income earners of 15 or 20% of the entire world workforce. Oh, what the hell am I thinking.....they already do!!
Your description of the thinking behind the FairTax “prebate” is.. colorful... but inaccurate.
The concept is that the necessities should not be subject to tax. But rather than define specific items that are tax-exempt, which is a minefiled for multiple reasons (two most dominant: 1) say we exempt food... which foods and what quantities? Hamburger but not steak? Crab but not lobster?; 2) who are we to decide what is “necessary” in a one-size-fits-all model?), the decision is to use the poverty line as the amount for “necessities” and to provide a tax credit for the amount of sales tax on that amount.
Note that calling this a “basic income guarantee” would be like calling the personal exemption and standard deduction of your income tax a “basic income guarantee”, because that’s exactly what this would parallel and what it replaces.
Just because two things have superficially similar outcomes does not mean that the two things are in any way similar.