Actually, they would have to pay a LOT, at least relative to legal residents. Because you have to have a valid SSN to file for the rebate (or Family Consumption Allowance), illegals would in actuality be paying a higher effective tax rate than the rest of us.Supposedly ~25% of what they are buying now is "embedded taxes" and prices will drop that amount with a NRST. So an item that costs $100 today would cost $75 plus $22.40 in taxes for a total of $97.40. I doubt the illegals would complain too much.
"Supposedly ~25% of what they are buying now is "embedded taxes" and prices will drop that amount with a NRST. So an item that costs $100 today would cost $75 plus $22.40 in taxes for a total of $97.40. I doubt the illegals would complain too much."
Ok, YN, two things need to be stated here for the benefit of the others on this thread so that they will know what is going on. (1) You understood the point that I was making and chose to pretend otherwise and (2) you posted your response to a related but slightly different point in a deliberate attempt to confuse and/or mislead others on the thread.
Therefore, I am posting my rebuttal for their benefit.
Contrary to your post, the point I was making was NOT that illegals would be paying more than they are now or that we would have a mass tax revolt among illegals on our hands. The point I was making (as you well know)is that illegals would be paying taxes at a rate that would be disproportionate to those of us who are legal citizens and choose to file for the rebate or PCA. That should go a long way toward quelling the resentment and hostility toward illegals that we see now and the perception that they utilize public services that they do not pay for. The fact is that, to the extent that they buy "stuff" that has taxes imbedded in it, they are helping to pay for government services now, but that isn't the public perception and they certainly don't pay at a rate that is disproportionate to the rest of us. Under the current tax regime, legals pay BOTH the imbedded taxes, as well as tax on their incomes. The FairTax would shift the tax responsibility from being tilted in favor of illegals to one that favors legal citizens. Even you will have to admit that's a positive step, right?
"The same applies for the 'underground economy' except now they can avoid these taxes altogether by purchasing on the blackmarket."
Just what types of consumer products do you think will be sold in mass on the black market - houses, cars, groceries, furniture? Help me out here, YN.