[upchuck]

A question for Fair Tax fans:

A popular part of the sales pitch for the Fair Tax is that it eliminates the eeevvviiilll IRS.

Assuming the IRS is completely eliminated and it’s thousands of employees are looking for work, what mechanism exists to collect the revenue generated by the Fair Tax?

And, FWIW, I'll point out that I don't like the IRS any more than you do. But the IRS is just a collection agency. They don't write tax law.

[Man50D]

Assuming the IRS is completely eliminated and it’s thousands of employees are looking for work, what mechanism exists to collect the revenue generated by the Fair Tax?

Retail businesses collect the tax from the consumer, just as state sales tax systems already do in 45 states. Retailers collect the tax and send it to the state taxing authority. The states will send the collections to the already existing Treasury Department.

[Turret Gunner A20]

RE: # 8

Assuming the IRS is completely eliminated and it’s thousands of employees are looking for work, what mechanism exists to collect the revenue generated by the Fair Tax?

The tax, being included in the quoted purchace price, will be collected at the point of purchase, and forwarded to the US Treasury Department. Just like state sales taxes are handled -- seller collects and sends to the state's revenue department.

The difference is that this tax will NOT BE ADDED ON TO THE SALES PRICE, it is a part of it.

[lewislynn]

Assuming the IRS is completely eliminated and it’s thousands of employees are looking for work, what mechanism exists to collect the revenue generated by the Fair Tax?

50 NEW state (turned federal) collection agencies (likely manned by former IRS agents) with 50 different interpretations of the law.