Replies

Learn to read the cites quoted:
"The FairTax requires all businesses (including non-retailers) to keep business records kept in the ordinary course of business that would aid cross checking by government auditors.[22]

Conclusion

Tax evasion will undoubtedly be a problem under any tax system. It is a major and growing problem under the current tax system, despite very substantial efforts and increasingly harsh treatment of the taxpaying public. Almost 40 percent of the public, according to the IRS, is out of compliance with the present tax system, mostly unintentionally due to the enormous complexity of the present system.
This breeds disrespect for the tax system and the law, and makes a system based on taxpayer self-assessment less and less viable.
The FairTax is likely to reduce rather than exacerbate the problem of tax evasion. The increased fairness, transparency, and legitimacy of the system will induce more compliance.

The roughly 85 to 90 percent reduction in filers will enable tax administrators to address instances of noncompliance more effectively, and increase the likelihood that tax evasion will be discovered.

The relative simplicity of the FairTax will promote compliance.

Businesses will need to answer one question to determine the tax due: how much was sold to consumers?

Finally, the dramatic reduction in marginal tax rates will reduce the gains from tax evasion. If the cost of noncompliance remains comparable (or even increases due to the increased likelihood of getting caught caused by the much smaller number of filers), then both the expected profit from and frequency of tax evasion will decline."

For you two, the 'fairytale tax' is a nightmare... Why is that?

Ricebowl problems, I'd bet..
1,271 jones

Uh, those would be the state administrators?

I'm saying that's a big temptation to existing small companies, plus it encourages the formation of new one-man "consulting firms" to take advantage of the savings, legal or otherwise.
1,272 robertpaulsen

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How would the government even know to audit a non-retail business?

1,273 posted on 02/04/2005 10:22:52 AM PST by Your Nightmare

Do you two really believe that the FairTax wouldn't have federal compliance auditors? The FairTax scheme proposed only changes the method of taxation; it is not a form of anarchy.

Get a grip, and think a bit beyond your snappy [but inane] comebacks to a taxation system that could actually work to increase personal liberty in this country.
How can you be opposed to trying such a system? What's with all the nitpicking?