Unfortunately, the IRS won’t be abolished. It will have a new job looking for black markets - folks who selling retail, but not charging the sales tax.
But it is still better than the Income tax.
As I understand it selling USED goods would not require paying the tax. No doubt some would try to sell new without paying but at least you would be able to go to the flea market as often as you liked to sell used stuff without being taxed. I hate the crazy sales tax on used cars in this state, if you want to sell your old vehicle to your neighbor he has to pay the same sales tax rate as on a new vehicle and since there is a cap on the tax on a new vehicle someone buying a beat up used car may end up paying the same amount in sales tax as a rich person buying a new Ferrari.
There is, of course, no question that the FAIRtax is far and away a better tax than ANY income tax!
FAIRtax will be administered by the individual states, who are, trust me, EXPERTS at chasing down cheaters. I don’t expect cheating to be a major problem with FAIRtax.
There are five states without a sales tax: Alaska, Delaware, Montana, New Hampshire and Oregon. They have the choice of “harmonizing” their tax structure with the FAIRtax or of allowing the Fed to administer the tax. I predict that they will all implement a state sales tax.
I further predict that the states that currently have a state income tax will abolish their income tax and likewise “harmonize” their taxes with the FAIRtax.
States and businesses will be compensated for collecting the FAIRtax which will eliminate the unfunded mandate which the income tax currently imposes on businesses and individuals.
And, the IRS will shrink in size to the point that all the Feds will have to do is count the money!
It will also be renamed!