The only way I would support this is if it was a constitutional ammendment that stated the sales tax rate. It is way to easy for legislators to raise a single tax rate to increase revenue for more crappy programs. We'd have a continuously climbing tax rate.
Legislators wouldn't have to, Linders's fairtax plan actually allows bureaucrats at Social Security to "determine the rate" every year without oversight or votes from Congress....
Just like they do with IRS, the legislators could simply throw up their hands and claim it's not their fault, it's the nameless, faceless bureaucrats at Social Security who raised the rate.
Have you noticed how politicians pander to the issue of the moment?
The legislation (H.R. 25, S.1493) requires a 2/3 vote of both Houses of Congress to raise the rate or alter the tax base.
If the Fair Tax rate were to be raised, there would be a lot of adverse publicity followed by a huge outcry by the citizenry, and Congress would back down.
The old-age, survivors and disability insurance rate shall be determined by the Social Security Administration. The old-age, survivors and disability insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the Calendar year for which it applies.`(e) HOSPITAL INSURANCE RATE- The hospital insurance rate shall be determined by the Social Security Administration. The hospital insurance rate shall be that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 2.9 percent tax on the Medicare wage base (including self-employment income) as determined in accordance with chapter 21 of the Internal Revenue Code most recently in effect prior to the enactment of this Act. The rate shall be determined using actuarially sound methodology and announced at least 6 months prior to the beginning of the calendar year for which it applies.
Of course we're all sitting at home knowing exactly what 12.4% and 2.9% of the nation's wage base is so we know we aren't getting screwed. Some people have more faith in nameless, faceless, unelected bureaucrats who love YOUR money than others.
The State tax rates should be left to the states. The higher the rate, the worse their economy. We have the option to leave a state and we can let them learn from their errors without destroying the entire company. The Federal system should push as much back to the states as possible, to allow them to succeed or fail on their own policies.