[pigdog]

You might read about the prebate mechanism on the THOMAS website - http://.thomas.loc.gov - and enter "hr25" (without the quotes) after selecting the choice for "bill number".

It is actually pretty strightforward and can be handled by the SSA much as they now do for SS payments (or wire transfers). It is a highly computerized operation.

I don't recall any who support the FairTax as claiming that the prebate (or anything else) would be without fraud. Whenever you have people, you have the potential for fraud. I personally think the opportunity for fraud is fairly low however.

The prebate is based upon family size ONLY and everyone may obtain it (unless you choose not to for some reason). It is your money to spend and you choose what (or whether) you spend it - and when. Seems to me that is fair.

But please read the bill (it's in English, not legaleese) and the prebate is called the Family Consumption Allowance.

[groanup]

I don't recall any who support the FairTax as claiming that the prebate (or anything else) would be without fraud. Whenever you have people, you have the potential for fraud. I personally think the opportunity for fraud is fairly low however.

The vast majority of transactions under the NRST would require the collusion of two people to effect a fraud while the current system let's you cheat alone. The fraud losses under a NRST probably would not approach the gains from the taxing of the underground cash economy. In fact, if you assume fraud losses under the NRST would stay about the same (I think they will decrease) the additional underground tax base would be a huge net increase in revenue. Add in a few tens of millions of foreign tourists and...well?

[pigdog]

My apologies for the broken link ... please try http://thomas.loc.gov

The "loc" stands for "library of Congress" BTW - an official site.

[Final Authority]

I respect your answer as the answer you offer is the only one possible, that is, based on the plan. The plan is not the law that will be enacted 'cause bills are never reported out of conference committees the way they went in. Before that even, at the time when a bill is voted on in the house, all sorts of mischief by way of amendment can be caused. That is before it goes to the Senate. What you see now is not what you will get.

BTW, when MA issues SS#s to criminal aliens or all of the criminal aliens who have moved back to Mexico, do we also pay them a monthly basic income guaranty as well? That is, is the system going to be automatic or will there be some sort of verification? I can see so much fraud right now it ain't even funny.