You are caught up in static economic analysis. A change in the tax code will cause people to change behavior. Many people will create business out of their hobbies to acquire a sales tax exemption certificate.
Dynamic economic analysis suggest the number of collection points will increase as well and the number of sales tax exemption certificates. Both developments will increase the amount of fraud.
You are caught up in static economic analysis. A change in the tax code will cause people to change behavior. Many people will create business out of their hobbies to acquire a sales tax exemption certificate.The first thing I'm doing is setting up a business. A miserable failure of a business that will allow me to buy stuff tax free.
You are caught up in static economic analysis. A change in the tax code will cause people to change behavior. Many people will create business out of their hobbies to acquire a sales tax exemption certificate.
No I am not caught up in a static analysis, you are caught up in resisting change. There will be adjustments and changes in behavior as with any law, but that is true now, look at how popular large SUVs were because of the depreciation deductions..look at other social engineering in the current law. Under the Fair tax there will be no social engineering and people will buy what they need and not for tax purposes. There will be some people trying to abuse any system, but it will be far easier to catch less people than more people.
Dynamic economic analysis suggest the number of collection points will increase as well and the number of sales tax exemption certificates. Both developments will increase the amount of fraud.
What makes you think the amount of fraud will increase from what we have today? Have your read the analysis of expected fraud? It seemed to me to have been well taken into consideration.