Dear RobFromGa,
I own a small business. My own compliance costs with the current system amount to about a quarter of one percent of my revenues. In some years, a half of a percent.
That should pay for it. Yeah, that's the ticket.
LOL.
sitetest
That's higher than mine. I want to meet this business that is paying 30% of their gross in compliance costs.
I also own a small business and compliance costs are negligible. There are many similar businesses.
This brings up another concern with Fair Tax...
Right how when I spend money on business right now I get to deduct it as a business expense, and never pay taxes on it.
As a salesman many of these expenses are travel (airfare, auto mileage, hotels, meals), office expenses (phones, faxes, supplies, admin services), and marketing (postage, printing, promotional items, gifts). Supposedly I will be able to flash a card and that will save me the FairTax at the point of purchase.
Who is in charge of compliance here? Does the hotel front desk person question if my hotel stay is a business expense or am I on my honor? Since I will no longer have any compliance costs that means I won't be spending money on keeping records and defending myself in any kind of audit-- right?
I predict that almost every person will start a business and get a card.