Please advise us all of what you think the "compliance cost" might be under the FairTax. The spammers claim it would be nothing. Without evidence, of course.
Actually, you're wrong. Fair Tax proponents claim a reduction of 90% in compliance costs. There is ample evidence, should you want to see it.
Your problem is that you discount it before seeing it - likely because you don't have the ability to analyze it. There's nothing wrong with that. The stupid part is you making assertions based on your inability to analyze a piece of evidence.
Actually, you're wrong. Fair Tax proponents claim a reduction of 90% in compliance costs. There is ample evidence, should you want to see it. It is not like we haven't seen the faulty analysis a hundred times. The so-called compliance costs are mostly time and costs incurred by individuals preparing their own return. Nothing to do with cost of goods. Business reporting will not significantly change, so there is little savings that will show up in the cost of goods.
Actually, you're wrong. Fair Tax proponents claim a reduction of 90% in compliance costs. There is ample evidence, should you want to see it.
What about the evidence of the compliance costs of sales taxes? Do you want to see some of that evidence?
In 1998, the Washington State Department of Revenue did a
study on the compliance costs of their state sales taxes. The total cost weighted by dollars was 1.42% of the taxes collected.
Half of the costs were credit card processing fees! (A business is charged a percentage to process credit card transactions - add sales tax to the transaction and the processing charge goes up.) And since the FairTax would be
at least four times higher than the Washington State sales tax, the compliance costs could be ~3.8% of revenue collected. And for this 3.8% cost, the FairTax people would pay the retailer 0.25%! What a deal.
BTW, the the compliance costs hit small retailers particularly hard. The study concluded small businesses had a 6.47% compliance costs as a percentage of collections. Who knows what it would be with the dramatically higher FairTax rate.