[Your Nightmare]

anyway, prebate is a made up word - did someone tell you it was an official word?. Someone (on these threads) came up with it to instill the idea that it was a refund paid in advance ...

I know it was made up to "instill the idea that it was a refund paid in advance." The problem is that isn't what the FCA is. It is not a refund paid in advance, but that's what the FairTaxers want everyone to believe, so they call it a "prebate." More marketing BS from the FairTaxers.

It is defined as rebate. Whether you like that definition is another story. But it is defined as a rebate.

The bill could define it as swiss cheese, that doesn't make it so.

2) because any tax paid on spending below the poverty level is seen as an overpayment and is refunded.

But you are giving some people back more than they paid. That's not a refund.

No matter what, you'll complain. We all expect that.

And no matter what, you'll obfuscate, misdirect, and mislead. We all expect that.

[Principled]

But you are giving some people back more than they paid.

How often will it happen that an individual does not purchase the necessities of life? Maybe buy-up one month to save the next month - but that means they paid last month.

What is the alternative? No rebate? Then you'd complain that it wasn't fair to everyone. You simply don't want this to happen.

In the case someone decides to grow their own food with their own seed and consume nothing - it would be easy to see this won't happen much if at all - people like being comfortable - people like electricity at home, prepared food, cable tv, cell phones, boats, etc....but in your little case you want to magnify - the alternative is no refund of taxes on necessities. That would be unnacceptable to pass the reform bill (which is your goal, I know) but not to 3/4ths of the folks who hear about this reform.

And it is a refund of overpaid taxes - any tax paid on necessities is an overpayment. It is only something different in the unlikely situation above... So only in those cases (and I'm not convinced those cases will happen) could you call it other than refund. Go ahead. But it is a refund for the people consuming their necessities.