Consumers can't cheat the system, only the sellers can. (How many people of all stripes are cheating the system now?) Consumers will always act in their best interest as they should. That is the beauty of free enterprise. Each consumer acting selfishly builds a better society for us all.
I honestly don't know how the Fair Tax treats foreign purchases but I don't care. The ripple effect of the Fair Tax throughout the economy will take away the advantages to buying elsewhere. Those foreigners will be moving here to take advantage of our tax system, not the other way around.
I remember before Bush's tax cuts many rich folks were moving offshore and some even denouncing their U.S. citizenship to avoid our high income taxes. No need for that under the Fair Tax.
The fair tax will be a huge boom for the rich.
What do you care? It is a huge boon for you, too. All that extra money the rich are spending to avoid the income tax can be put to better use building our economy. The elimination on withholding on everyone will release a lot of money into the economy. That will create demand, which will create jobs, which will give more people money to spend which will increase demand even more. The taxes on all the new purchases from those millions of people will make the rich irrelevant as far as taxes are concerned. Heck, they don't pay much now anyway.
What? Consumers are the ones liable for the tax, they can cheat it in many ways. Consumers can:
1. Buy stuff over the internet and/or foreign sellers and not report it.
2. Buy stuff on the black market and not report it.
3. Buy stuff for personal use and claim it was for business.
Remember, the fair tax bill makes the consumer LIABLE for the tax unless they buy from a registered retailer and recieve an official fair tax receipt. The consumer can cheat the system and will be watched and audited by some big intrusive tax collector whose name will not be the IRS.