a) fairtaxers readily admit some could be getting more back than what they pay (which happens today with EIC, i know) but that makes it welfare
b) it is a liberal's dream to have every single family in the entire country on the dole of the federal government -- calling it a 'refund' makes it acceptable to conservatives. (the answer there is, well don't sign up for it)
the fraud/loopholes in today's system will just be replaced with a different type of fraud/black-market. which will quite large. the idea that criminal enterprises will be taxed under the new system because they have to participate in the consumer economy seems silly to me. yes it might pull in a bit of money from petty theives but criminals will be criminals and if they can figure out how to obtain a $100 item for $70 illegally they will do so.
the federal gov organization to ensure compliance with nrst laws will likely be the same size as the irs some day.
FairTax is a tax on accumulated wealth. Those are the words of Rep. Linder. It would negatively impact almost everyone who has saved already-taxed monies, ie: regular savings accounts and Roth IRA's.
You are dreaming up a nightmare that does not exist. Those who have a negative tax rate under the prebate will certainly have a difficult and sparse existence. Check out the figures for yourself and judge where you think suvbsistence might be. Most low income earners will undoubtedly spend more than they receive as a prebate.
It isn't welfare and there is no intent that it represent a subsistence dole (unlike some of the present welfare program). It is simply refunding your tax paid. Is someone spends less that the prebate one year, they would very likely spend more that the prebate in other years. It is not welfare, And it IS optional.
The illegal economy which almost completely escapes taxation today WILL be tax at 23% on taxable expenditures. This is in no way "silly" but quite logical and will contribute heavily to tax revenues - wheras now you and I make up for that shortfall from those folks since they are largely not taxed. There will be very little in the way of a "black market" and no one has been able to show how there can be but only to generate the fearmongering of saying it'll be "massive". Let me tell you, the illegal economy we have now is what is massive and a black market in every sense of the word. The FairTax will be a breath of fresh air compared to the present widespread evasion.
Read the bill - it is the states that will be collecting and managing the FairTax (not the Feds) and they are paid to do so.
If so, your position is to retain the status quo?