What about smuggling? Splitting a 23-30% tax (it will probably end up being more) would GREATLY encourage smuggling. Watch the Border Patrol get increased then!!
I think you must have intended to respond to a different person.
I oppose a National Sales Tax.
What ABOUT "smuggling"??? Do you think it doesn't happen now? Do you think someone from Kansas is going to drive to Mexico to "smuggle" in a semi-truck load of bread and sell it in the parking lot without attracting attention and being turned in when everyone knows that would be an illegal activity?
You'll have to be much more specific than that. And keep in mind that there are customs laws and officers also to deal with that. And your unsupported assertion about the tax being "more" is probably the revessrse of what will actually happen since being revenue neutral today would result in a 19% tax inclusive rate.
With ANY savings that people have now (whether already taxed or not), they will be paying a "hidden tax" if they spend it under the income tax in the form of cascading, embedded tax costs that raise prices substantially on all that they buy. That goes away with the FairTax and prices decline.
In addition under the income tax many forms of savings generate taxable income which, under the FairTax, is not taxed at all.
Mexico has a 10 to 15% VAT and 34% corporate tax and 32.8% import duty. Other than cigarretes which don't have state taxes added, and contraband like narcotics, most smuggling is going into Mexico not out... Canada has a GST general sales tax of 7% and in some areas an HST harmonized sales tax (inc local) of 15% and various import duties....
Even if articles were smuggled into the US the collection point is not at the border but at the retail sale so any items smuggled in would have to be sold in an illegal manner to avoid an NRST, just like products produced in the USA. With less embedded taxes and compliance costs, the difference in prices is going to be less than the tax rate- 23/30%, our exports will flourish.
Do you think our current tax system adds nothing to the price of products?