[robertpaulsen]

"I like the fact that EVERYONE will be paying including criminals and illegal aliens (redundant I know)"

Catch this -- they are already!

When you buy a Made in the USA $50 shirt, the employee payroll and federal taxes, corporate income taxes, etc. are already built into the price of the shirt. Under the Fair Tax, all those taxes would be pulled out of the price of the shirt dropping the cost -- the Fair Tax is then added making the price $50 again.

According to the proponents, if you believe them, the Fair Tax simply makes all these "hidden" taxes visible. The only way we'll get more money from the drug dealers and prostitutes and other criminals is if they start charging the Fair Tax on their services and they send that money the the federal government.

[Normal4me]

So in other words we are getting screwed twice right now. The product already has taxes built into it and I am then charged an additional (income tax) on the money I need to purchase the product? Or does that total amount still add up to 30%? Another question I have is how the fair tax will not tax "used" items. Why would people buy something new if they could save 30% by buying something used (such as a vehicle)?

[lucysmom]

The only way we'll get more money from the drug dealers and prostitutes and other criminals is if they start charging the Fair Tax on their services and they send that money the the federal government.

The FairTax eliminates one government tool used to put criminals out of business - tax evasion.

[cowboyway]

The only way we'll get more money from the drug dealers and prostitutes and other criminals is if they start charging the Fair Tax on their services and they send that money the the federal government.

Criminals, prostitutes and others engaged in a non-disclosed cash system don't pay any income taxes now.

But, all the above buy cars, clothes, homes, TV's, computers, etc. When they make these purchases under the Fair Tax, they are contributing to Federal revenue.

Now, they're in the system.

In addition, foreign tourist are paying.

And, if you decide that you don't want to pay taxes, don't buy anything.

[pigdog]

That's certainly not the case. The amount of taxes paid by those in the illegal economy is very small as has been shown elsewhere on this thread. It is something less than 20% of the FairTax marginal rate on the same item.

It's not merely the hidden taxes that will be made visible with the FairTax, but all FairTaxes - on a clearly defined receipt given to the purchaser when he buys. Depending upon he actual tax situation of the taxpayer under both tax systems the price tax inclusive may even be less under the FairTax,

No tax system will ever collect much if anything from the illegal activities - that's why they're named that (DUH) - but when the folks in the illegal economy purchase at retail they will certainly pay the FairTax at the same marginal rate you and I do.