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.
"Those who have a negative tax rate under the prebate will certainly have a difficult and sparse existence. "
agreed.
"The illegal economy which almost completely escapes taxation today WILL be tax at 23% on taxable expenditures"
so all criminal will now be shopping for their goods at the local Best Buy. uh sure, ok. Maybe it will hit them on their food bill at the local Kroger but beyond that, yes, i still think it is wishful thinking. i agree the current black market is massive, and it ain't going way - just changing forms.