The issues of privatized savings for retirement are important issues but are ancillary to the FairTax.
For sure people will be incentivized again to save under the FairTax even in the face of price stability. The act of saving was at one time a very much larger part of American culture. Today it is in so many cases a luxury even if there is a will to follow a saving discipline.
But these are broader issues involving monetary policy and the Federal Reserve. They are indeed important for they are joined at the hip with the Income Tax and have been so since 1913.
Most people ‘in the know’ are aware that Social Security will be insolvent and next year for the first time social security collections will run at a deficit. Despite all, Social Security revenues have been added to the general budget and have been spent. Social Security surpluses exist on ledger paper only. The spending of Social Security surpluses for general purposes shows up as an increase in the National Debt.
The entire problem behind the failing Social Security system is caused by shifting age demographics. As the number of elderly Americans has increased, the number of Americans in lower age demographic strata has not kept up. A civilization can only thrive if there is an encouraging environment for families because it falls to them to bring forth children that will eventually stabilize the age demographics.
France and other countries have responded to this aging problem by encouraging child bearing. The tax burden on French families is incrediibly light with each child they add. France is now in the process of slashing tax rates in many areas as well as following Sweden’s lead in abolishing inheritance or death taxes. These countries are swinging away from socialism through tax reform.
Americans have an opportunity to go one even better with an innovative transparent efficient and unintrusive consumption tax.
The reason the consumption tax was not thought of earlier in American history from 1913 to the 1990s, is because computer technology was not easily available for businesses to tabulate transactions and provide for an NRST accounting.
But today it is entirely feasible to implement a national consumption tax. In other words the FairTax is a byproduct of the information and technology revolution.
Enlighten me on the prebates, and the need for them as an integral part of the Fair Tax plan. Apparently, the system is to tax all goods and services, then return monthly prebates based on household size for those that qualify, thereby leaving the unqualifiers to pay taxes on groceries, and other necessities?
Why in the world would you need a computer to calculate something as simple as what you claim the FairTax to be?
My first job, back in the dark ages, was in retail. No computers to automatically figure and add the sales tax, or change due the customer. Somehow, we muddled through just fine.