I'm having a hard time believing this. The burden of rebates (or what ever you call them) will require each State to increase or build another form of bureaucracy. Checks just don't write themselves. Second, as families change, so does the status of the rebate. Out of work, new job with much higher pay, etc. Who monitors this? And I would assume that fraud will still happen. Don't kid yourself, it will happen. Everyone is assuming that there will be no black market
Also out of State purchases could be interesting. The bottom line is, there is no safe sane method of taxation. (Period)
The FairTax is that you will get all the money you earn and the cost of goods should be less because of the less taxes employers pay. No Way. Think this out. It's a wash. What you gain in the paycheck if withholding is not taken out will only be taken out at the time of purchase. Oh, I forgot, buy used goods - no tax. Good news for the poor. Whoopee, yard sales!!!!!!! Hey, flea markets, best goods straight from Mexico, China, etc.
"I'm having a hard time believing this."
Then by all means you should spend some time teaching yourself about the FairTax. Even reading the first few pages of the lead-in paper would help. Reading some of the bill itself would be even better.
As it is you're merely guessing and assuming things that aren't true. Another source of information is the FairTax website. Become an informed voter.
You might even use the anonymous FairTax rate calculator and find out what your actual effective FairTax rate would be. If you pay taxes now chances are you'll see a sizable drop in your effective tax rate over that you have under the income tax. Frequently the rate is something like 1/2 the effective tax rate under the income tax. But do yourself a favor and read the clear instructions, do it as accurately as you can and see the benefits for yourself.
Second, as families change, so does the status of the rebate. Out of work, new job with much higher pay, etc. Who monitors this?
The Department Of Health will determine the poverty level for a family H.R.25 SEC 303
And I would assume that fraud will still happen. Don't kid yourself, it will happen. Everyone is assuming that there will be no black market,/P>
Fraud/tax evasion may still happen but to a much less extent Fair Tax FAQ #33 as it will be much easier to comply. Compliance will occur for the consumer when they purchase an item. It will be easier to catch tax evaders since there will be far fewer. People will be less inclined to cheat with the rebate reducing the effective tax rate to less than is currently paid with the income tax.
Also out of State purchases could be interesting.
By interesting I assume you mean difficult. The Fair Tax will not be anymore difficult for out of state purchases since the tax will still be collected at the point of sale. The individual will have paid his/her tax at that point and need not fill out any tax forms.
The bottom line is, there is no safe sane method of taxation. (Period)
I have no idea what you mean by this statement but The Fair Tax is far simpler, requiring far less paper work and compliance is much easier.
The FairTax is that you will get all the money you earn and the cost of goods should be less because of the less taxes employers pay. No Way. Think this out. It's a wash. What you gain in the paycheck if withholding is not taken out will only be taken out at the time of purchase.
The Fair Tax is revenue neutral Fair Tax FAQ #6 but factoring the rebate will result in an effective tax rate Fair Tax FAQ #5 that will result in a lower tax rate than the income tax.
Oh, I forgot, buy used goods - no tax. Good news for the poor. Whoopee, yard sales!!!!!!! Hey, flea markets, best goods straight from Mexico, China, etc.
It is good news for everyone not just the poor because used goods will be tax free for all economic classes. Is suggest you spend some time reading the bill The Fair Tax Act H.R. 25 and visit the American For Fair Taxation website before making anymore inaccurate statements about The Fair Tax.
"Second, as families change, so does the status of the rebate. Out of work, new job with much higher pay, etc."
Irrelevant to the rebate - it isn't tied to income.
"Who monitors this?"
No one; don't you love the simplicity of the FairTax?
"And I would assume that fraud will still happen. Don't kid yourself, it will happen. Everyone is assuming that there will be no black market"
I don't know who "everyone" is, but certainly I am not among them. What I assume is that with a dramatically simplified system and an enormous reduction in points of enforcement/compliance, as well as a big concentration of sales dollars (and thus sales tax dollars) among the mega retailers, resources allocated to enforcement will go much, much further than they do now.
Bottom line:
We will get much, much higher levels of compliance than we do with the current system with lower levels of resources committed.
Will the FairTax eliminate tax cheating? Of course not, but if that is your benchmark, then we will never have anything except the current dysfunctional system. That is, until one of the major economic problems that our tax system contributes to causes an economic crisis of some kind.