The infrastructure is in place. Today, most states have an income tax; the feds do much of the bookkeeping. Abolish the IRS, and there's your pool of bean-counters -- they will go to work for the states, which will then assume their salaries.
In the short term, there will be a hit for the states. I would assume that the states subtract a cut for their overhead before remitting to DC -- but I haven't drilled down tat far into the nuts and bolts.
Bottom line, I expect some long-term savings from the Fair Tax, but nothing dramatic. There will still need to be tax collectors. The Fair Tax will shift the burden - and the power that comes with it -- from the federal government to the states. It will cost somewhat less, because it's more efficient -- instead of monitoring every worker, the government would only need to monitor every retailer.
If you're a small business owner, selling new goods on eBay or in a flea market stall or from a card table on the sidewalk, you're free not to register as a retailer -- you're not collecting tax on your sales, but it's all good, because you paid the tax when you bought the goods. If you prefer, you can register, get a tax ID number, pay no tax on goods for resale, and then collect the tax when you make the retail sale. Pretty much how it works at the state level now.
The infrastructure is in place. Today, most states have an income tax; the feds do much of the bookkeeping. Abolish the IRS, and there's your pool of bean-counters -- they will go to work for the states, which will then assume their salaries.As near as I can see by your sign in date and since you're guessing (or wishing) at what the Fairatx is, between the 2 of us you are the new one to the Fairtax.
You didn't read the testimony from the Texas tax collector and you haven't read the bill...when you have, let me know.
If and when the time comes who do you think will be listened to about their needs, state tax collectors or you?