In other words, it is a handout to people who's earnings are below the poverty line. And how is that poverty line determined?
The difference is The Fair tax reimburses people before they pay the tax not after as our current oppressive tax code.
The current tax code is only oppressive to the 50% or so of us that actually pay income tax. Of course, the complexity of the code is also oppressive. My thought is to simplify - 10% tax on all earnings. No deductions, no credits - all earnings to all people earning. No earned income credit, no poverty-level deductions. Everybody pays the same rate.
The code could be written on 10 pages instead of tens of thousands. Payroll deductions would be exact - 10%.