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To: SolidSupplySide
That is a major problem with the sales tax. Experience around the world suggests that when rates get to the 12-15% range (well below the proposed "Fair Tax") there is massive evasion. The risk/reward of evading a large sales tax crosses the tipping point.

And what is our current income tax rate? How many collection points? And under theFair Tax how many collection points? And how many cooperating people does it take to evade now and under the Fair Tax? How may non-filers are there now? I'd rather see a smaller number of businesses and service providers policed than all US citizens and residents. How accurate is our present system if 10 accountants from Money magazine can't even come close to figuring the right amount of tax due.

157 posted on 09/15/2005 11:37:14 AM PDT by rolling_stone (Question Authority!)
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To: rolling_stone
And how many cooperating people does it take to evade now and under the Fair Tax?

The Fair Tax is easier to evade. Either a dishonest buyer or seller can evade the Fair Tax. Dishonest Buyer: Presents a sales tax exemption certificate for items of personal consumption. Dishonest Seller: Collects sales tax but fails to remit it.

A dishonest seller can evade the income tax by simply not filing. A dishonest buyer cannot evade the income tax.

160 posted on 09/15/2005 11:40:57 AM PDT by SolidSupplySide
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