Now a business will have 50 tax collection agency to deal with. The states will take over the IRS's job. 50 little IRSes, each with their own rules, regulation, procedures, etc... and business will have to file once a month to each of the states they do business in instead of once a year (or quarter) to one agency. So much for simplicity.
Just out of curiousity, where does this "50 tax collection agencies" number come from? Like I said, I'm not an expert on the proposed legislation. From what I've heard it sounds good though.
The truth is that 45 of the 50 states ALREADY have sales tax enforcement agencies in place which by - the - way, are invisible to 99.44% of the population.
"Now a business will have 50 tax collection agency to deal with. The states will take over the IRS's job. 50 little IRSes, each with their own rules, regulation, procedures, etc... and business will have to file once a month to each of the states they do business in instead of once a year (or quarter) to one agency. So much for simplicity."
You are confusing state sales taxes, which are undoubtedly a mess, with the federal sales tax, which is what HR25 will bring about. Filing once a month with the states you do business in, for example, is a requirement of state sales taxes, not a federal tax.
Even on this front, however, there is good news. The FairTax will encourage states to "harmonize" their state sales taxes to the new federal NRST. There is already a movement afoot to standardize state and local sales taxes; the FairTax can realistically be expected to accelerate that trend. Most of the complexity in state sales taxes comes from differing rates and differing exemptions in different jurisdictions. Since the NRST is a single rate with no exemptions, at the very worst, we will be no worse off than we are today with respect to the complexity of collecting sales taxes, and a huge amount better off than we are with respect to income taxes.
Also, no matter how you slice and dice it, converting from the 60,000 page monstrosity that we have now to a system that is less than 1,000 pps. will result in an enormous savings in compliance costs.