The authors of the FairTax bill have worked with OTA and the Joint Tax Committee for years. They know the accountants and actuaries personally and they know the details of revenue estimation. They know the details of revenue estimation so well that they advise the revenue committees on methodology. For example, they were successful in writing law that requires Congress to use dynamic scoring versus static scoring methodology.
It is wise to study their findings before jumping to any conclusions.
That’s not to say there isn’t a political fight going on. There are many vested interests in keeping the Income tax. The Washington DC K Street lobbyists would experience severe cutbacks if the Income tax was abolished. Almost all corruption in Washington can be traced back to special tax favors with the Income tax code. It will be enormously more difficult to bribe and control members of Congress and their staffs under the FairTax and that is what scares them about the FairTax.
Lots of special interests want to confuse people like you so that you think negatively about the FairTax.
My advice for now is to watch and learn, don’t believe everything you hear, watch who tries to hide, omit or twist facts. Then you will see who are the real truthtellers over time.
I am not opposed to the fair tax in principle. It is just that with Corps, previously owned goods, and investments not being taxed I don’t see where the revenue is going to come from. I own three corporations so about the only thing that I would have to pay taxes on is the food and gas that I buy, everything else would be tax exempt. It sounds like a fantastically good deal for me :)
I don’t think the struggle is in the method of taxation it is in the fact that the government taxes too much. We need to cap the governments ability to tax and borrow.