[Still Thinking]

I’ve given this problem some thought, and it seems easy to fix. What would have to be done is that on the date of the changeover, say January 1, 2010, or whatever, if you had $100,000 in savings, stocks, etc., and the tax rate was pegged at 23% exclusive, you would be issued $23,000 worth of Fair Tax Vouchers, which could be used only to pay FT on future purchases. Thus, your $100,000 would still buy $100,000 worth of goods (or you could probably sell the vouchers at a discount and add that money to your investments).

[xcamel]

bandaid for an amputation.

[Filo]

I’ve given this problem some thought, and it seems easy to fix. What would have to be done is that on the date of the changeover, say January 1, 2010, or whatever, if you had $100,000 in savings, stocks, etc., and the tax rate was pegged at 23% exclusive, you would be issued $23,000 worth of Fair Tax Vouchers, which could be used only to pay FT on future purchases. Thus, your $100,000 would still buy $100,000 worth of goods (or you could probably sell the vouchers at a discount and add that money to your investments).

This works for me. Now we're one step closer to implementation. Tie the repeal of the 16th to the Fair Tax bill itself and we're one step closer still. . .

[lewislynn]

I’ve given this problem some thought, and it seems easy to fix. What would have to be done is that on the date of the changeover, say January 1, 2010, or whatever, if you had $100,000 in savings, stocks, etc., and the tax rate was pegged at 23% exclusive, you would be issued $23,000 worth of Fair Tax Vouchers, which could be used only to pay FT on future purchases.

Simple enough...But where would the money come from?...Higher rates?

[Hostage]

You have bitten into Filo’s flawed assertion that the FairTax is flawed.

The FairTax replaces all embedded federal hidden taxes. Goods and services manufactured or produced after FairTax enactment will no longer need to carry the federal embedded taxes, therefore the cost of those goods and services will fall and the price will be brought back by imposing the NRST (the National Retail Sales tax of the FairTax legislation).

To repeat; the FairTax is a replacement tax, it is not a tax on a tax.

See Post #257 of this thread for brief comments on how existing inventories would not be subject to the NRST.

http://www.freerepublic.com/focus/f-news/1887196/posts?page=257#257