Since everything else is neutral to the taxpayer, then you are saying that the compliance, underground, IRS costs, etc are equal to the entire revenue collections of the US government under the present system?
A trillion annual on IRS operating and enforcement expenses alone.
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
They are, all told, quite substantial. A more interesting issue, however, is that certain monies that exist today on which tax has already been paid would be taxed again under the new system. The "transition effects" would probably be signifcant, but I don't know exactly what they'd be.
I am still trying to figure out how they are going to get Trixie the local prostitute to collect and remit a 30% sales tax.
I'm a senior who has many questions about the fair tax. But talking to Congressman Linder he assures me that all questions I have will be answered to my satisfaction and will make me a Fair Tax supporter.
Have you checked out the www.fairtax.org web site? Perhaps some of your questions will be answered there. I saw Linder and Boortz on Cavuto today and they claim everyone's paycheck will have NOTHING deducted....no SS..no medicare...no taxes whatsoever will be taken out.
I'm sure I have the same questions everyone has...if there are no taxes taken out how do we know the consumption tax will raise enough revenue to run the country? How can they tell for sure how much revenue will come in each year? What happens in years where sales are down and people aren't spending? How do we know the 23% won't be raised every few years? Trust me I want reform...just want to make sure we aren't going to be getting into a bigger mess!!
If you really want to know and aren't just yanking our chain, go to http://www.fairtaxvolunteer.org/smart/tax_system.html and look at the very bottom Table 2.