[RobFromGa]

The problem with your thinking is that the FairTax rate is calculated to generate the required amount of revenue-- not to maximize revenue.

My contention is, and has been, that the optimal FairTax rate will not collect enough revenue, and they will be forced to raise it which will actually drive more transactions underground or eliminate them, and will generate less revenue.

When that happens, they reintroduce the income tax as an emergency measure on the productive and we have the worst of both worlds.

[pigdog]

"My contention is, and has been, that the optimal FairTax rate will not collect enough revenue"

And your contention - as definitively shown by the lead-in paper - is incorrect.

In fact the FairTax will probably generate too much revenue, if anything, should the rate is left at 23%.

[elkfersupper]

My contention is, and has been, that the optimal FairTax rate will not collect enough revenue, and they will be forced to raise it which will actually drive more transactions underground or eliminate them, and will generate less revenue.

My contention is that the Fair Tax would generate more revenue at half of the proposed start rate.

Why don't we try it and find out?

On another note, who cares?

The federal government generates wayyyyyyy too much revenue anyway.