And you’ve just made my point. Anything can be manipulated by the politicians. The Fair Tax is no different. The Fair Tax, AS WRITTEN, is much cleaner and far less susceptible to manipulation than the income tax.
The prebate is provided to all, at a flat rate, on the basis of family size. As written, there is no ability in the Fair Tax Bill to change the prebate on the basis of income, to track products purchased or to provide differential reimbursements on any basis.
Wow, and making up whole new sections of the FT bill too... Amazing!!
History has shown the Fair Tax Scam is actually EASIER to manipulate and LEGALLY evade. As it stands right now the core of HR 25 is the rebate prebate. Even though it is a formula, it shall be manipulated based on election years.
You will also have, just like in state income taxes, people manipulating for exemptions.
I know one of the first things lobbyied will be a demand for “parity” with the current system where the state income taxes were deductable from the federal income taxes.
It is not just the code itself that will be lobbyied and will become as absurd as the current system, it will be the interaction between state sales taxes, federal sales taxes, and state income taxes that will be reconciled based on who has the better K street firm.