Lower benefits or higher taxes....its that simple. So what does the FT rate have to be to cover the unfunded liabilities? Also, WHY would you want to PAY for prebate disbursements?
The FairTax law merely funds what is the current SS/MC requirement which - as I’ve said - I believe should both be eliminated. Until they are wither eliminated or greatly revamped the way the FT bill is written funds them and, in fact, the portion of the FairTax revenues that fund them is more likely to cause the FairTax to reduce somewhat with the present SS/MC payouts.
These amounts and the amount to cover the prebate is included within the 23% tax inclusive rate which is still revenue neutral.