The only thing I will say is that under an NRST, "undocumented workers" (i.e., illegal immigrants) will pay the full NRST rate on their purchases as everyone else, but will not be eligible for the FCA. This means that the illegals' effective tax rate equals their marginal tax rate, whereas the typical legal resident or citizen's effective tax rate is significantly lower than the marginal rate due to the FCA.An honest question. What do you think would happen if a plan like Bush's "guest workers" idea were implemented? Would they get the FCA?
Good question. I suppose it would really depend on the plan -- I haven't looked into that much, but it comes down to whether or not they'll be given a status equal to legal residents. If so, they'd probably be eligible for the FCA, though that would probably require amending the tax code accordingly as well. A "compromise" position might be to give "undocumented workers" (i.e. illegal immigrants with a job) the right to stay for a certain length of time, but not to be eligible for the FCA.
Too many variables for a guess with any kind of conviction, I guess.