Sorry, I was a bit unclear. The prebates represent a cost to implement and operate the system, when I don’t see the need for monthly checks to taxpayers. Maybe this is a part of the proposal that could be amended to pick up additional support for plan, or maybe I’m being unrealistic in that support would be eroded by amending the proposal to eliminate prebates? Anyway, many will disagree with prebates as it is a move to a higher degree of socialism in government and has an unnecessary overhead cost to issue them.
From the Fair Tax site FAQ #4
“The purchase of food, clothing, and medical services is made from after-income-tax and after-payroll-tax dollars, while their purchase price hides the cost of corporate taxes and private sector compliance costs.”
Under Fair Tax, the prices for food, clothing, and medical expenses would be less due to elimination of corporate taxes, and therefore doesn’t matter if they were exempt or not. Additionally, to use the system of prebates could cost more than it would to just forego collecting any taxes on these items.
From the Fair Tax site FAQ #4
“Finally, exempting one product or service, but not another, opens the door to the army of lobbyists and special interest groups that plague and distort our taxation system today.”
Lobbyists will still be there without or without Fair Tax or any other reform for that matter.
You know that the present Income tax is the tool of choice for Socialists today. Their number one objection and scare tactic is to claim that a national sales tax will tax the poor disproportionately. Think about that.
Furthermore, in American history pre-Income tax, the same complaints were made about the excise taxes of that era.
The choice comes down to this offering to the American people:
Behind Door 1 is the requirement for all households to file a federal income tax return under threat of criminal prosecution and imprisonment.
Behind Door 2 is an offering for all households to register with the federal government for the purpose of receiving a check.
I don’t think it’s too hard to guess what people would prefer.
Behind Door 1 lies a system where the federal government confiscates revenue from households and doles it out to entities on their list of favorites.
Behind Door 2 lies a system where households regardless of financial position are given a check of the same amount to offset consumption taxes below the poverty level.
So the argument that the FairTax is more socialist than the Income tax is specious.
As to your second comment regarding lobbyists and exemptions, yes lobbyists will be there initially in failed attempts to reimpose the Income tax. But repeal of the 16th Amendment will leave them with no place to go. But lobbyists that are seeking government contracts for whatever purpose (health, military, etc.) will be forever camped out on the banks of the Potomac. But the ability of members of Congress to trade favors for tax votes will be squelched.
To recap on the rebate, the FairTax rebate is a small price to pay to rid the country of the monstrous tax code that presently exists. The rebate is fair to all and is not subject to special favors or abuse. The rebate will not be manipulated because it is linked to a stable and well accepted method of determination of the poverty level by DHHS.