The national sales tax sounds like a good idea. But what about those people who come into the United States to work and then leave with the money they made? There are some people who like to send their money home. That's a problem, because these people will not be taxed. They won't have to pay income taxes and they won't spend the money here. I think our national sales tax may encourage people to take the dollars out of the country and spend it elsewhere. Do they have a plan to prevent this?
The national sales tax sounds like a good idea. But what about those people who come into the United States to work and then leave with the money they made? There are some people who like to send their money home. That's a problem, because these people will not be taxed. They won't have to pay income taxes and they won't spend the money here. I think our national sales tax may encourage people to take the dollars out of the country and spend it elsewhere. Do they have a plan to prevent this?Non-resident aliens have any income they make in the US taxed at the FairTax rate. Also, foreign corporations have "gross income from sources within the United States" taxed at the FairTax rate.
I believe that the "underground economy" that already exists will come to the surface. There are many many illegals, pimps, drug dealers, and other tax dodgers out there that would be paying taxes with implementation. People that make money here will spend at least some of it at the retail level. The Fair Tax will actually encourage huge investment in American business since businesses will not be paying taxes. Sure there will still be hidden taxes like mandatory compensation insurance, OSHA, EPA, et al. Remember that the plan is revenue neutral, so most folks will continue to pay about as much tax as they did before implementation. Except their payments will be voluntary.