Hmmm, sure looks like a use or consumption tax generally collected at point of consumer sale, just like state use or consumption taxes to me. Even has provisions for collection where taxable property or service is aquired in transaction other than retail sale, just as a state use or consumption tax would.Well, golly, if it says it's a consumption tax, it must be. AG, you know as well as I do that the FairTax doesn't tax true consumption. The purchase of a car or a new house is a good example. I pay the FairTax on the full purchase amount but I wouldn't be consuming that amount. You are essentially prepaying the tax for the consumption you might use.
The purchase of a car or a new house is a good example. I pay the FairTax on the full purchase amount but I wouldn't be consuming that amount.
You are essentially prepaying the tax for the consumption you might use.
Which you have every right to recover as unconsumed by you as you may when you sell your house.
You are right the FairTax legislation provides for only taxing once, at retail sale, and not multiple times as you would have it do in the forms of taxation that you advocate which either accumulate to a total revenue collected or cascade rates where no provision in made for deduction or credits for inputs, all of which increas the costs of tax administration as well as compliance on the the individuals subject to taxation.
Tax once but only once is the rule of the NRST implemented in the FairTax legislation. Once tax is paid, neither the owner of goods or property nor his subseqent assignees need to be bothered with the the tax system again, minimizing the impact of compliance and other tax costs that otherwise accrue in systems that would tax the same goods repeatedly throughout eternity.
I would much rather take a tax system that hits once, that one that continues to plague the citizenry and burden the economy repeatedly without end.