[Conservative Infidel]

So why should we change anything? The rich will all form corporations and buy all their expensive toys tax free. And you didn't answer the conundrum concerning tax-free bonds.

Better the devil we know...

[4edm 4ever]

To make tax exempt business purchases, you would need a tax exempt certificate. If you are buying from a business wholesaler (who only sells to other businesses), the purchase will be tax exempt; if you are buying items for business from a retailer, you will have to pay the tax and apply for a credit. It is a simple matter to track business purchases and match them to inventory, sales records, checking accounts, etc. Instead of audits being spread over 130 million points of collection, there will be less than 20 million. The FairTax contains penalties and sanctions for those who practice tax evasion.

Regarding bonds, the FairTax will not tax investments, whether stocks or bonds. That includes muni bonds. The change will be in the fact that competing corporate bonds will not be taxed either. According to a study by economists from the St Louis Federal Reserve a few years ago, moving to a consumption tax such as the FairTax would lower the interest rate on such corporate bonds by 25%. That means a one time capital gain for current bond holders (other than muni bonds).

Corporate bonds and munis will then compete on equal terms of duration and quality. Keep in mind, under those terms revenue bonds (munis) will still have an advantage because they are backed by the taxing power of the municipality.

[teenyelliott]

Better the devil we know

You must be joking.

Even if the actual dollar layout was the same, there would be no April fifteenth anymore. No more man hours spent trying to comply with our thousands of pages in tax law. No more millions (probably billions) of dollars paid to CPAs because no one can keep track of all the bullsh*t. No more tax attorneys, IRS property seizures, quarterly estimates, self employment tax, late fees, penalties, and on and on and on.

You buy something, the tax is paid. That's it. You wanna lower your taxes? Stop buying so much crap. It's beautiful, and it's easy.

[Badray]

So why should we change anything? The rich will ...

WOW! Class envy from a conservative infidel? I thought that was liberal democrat territory. Forget what others do pay or will pay. Look not only at what you will pay, but the control in IF and WHEN you pay. Look at the benefits to the Republic of destroying the IRS monstrosity.

Check out www.pafairtax.org and get some facts, okay?

[Bigun]

Better the devil we know...

Have you ANY idea where this "devil we know" comes from? It comes right straight out of the Manifesto of the Communist Party and, to be precice, from that section of the document detailing how fellow travelers should undertake the subversion of developed countries.

It has very nearly worked so, unless you want it to come to FULL fruition, the very LAST thing we need to do is stick with the "devil we know"!