You are already paying it. Approximately 22% of everything you purchase is the tax paid at the various levels of production that are passed on to the consumer in the cost of the product. The FairTax eliminates all those different taxes, and replaces them with one national 23% sales tax. PLUS, you get a prebate check for the amount of taxes expected to be paid by a family at a poverty level income.
[The FairTax eliminates all those different taxes, and replaces them with one national 23% sales tax. PLUS, you get a prebate check for the amount of taxes expected to be paid by a family at a poverty level income.]
AND IN THEORY I’m as fair as a 16 year old maiden.
What would happen in reality is that the Democrats would us this excuse to mash the system even worse so would get the evils of both worlds. The IRS will NEVER go away short of an armed conflict. Fair Tax means a VAT PLUS and income tax PLUS capital gains, etc.
How bout we just keep the current tax cuts on the books before jousting at windmills.
“PLUS, you get a prebate check for the amount of taxes expected to be paid by a family at a poverty level income.”
That is the single biggest problem with the FairTax and why it isn’t a fiscal conservative’s issue. Suddenly people at poverty level (actually more than poverty level since mortgage interest, education, used goods, etc. aren’t taxed) pay NOTHING in taxes. They have no incentive to vote for smaller, more cost-effective government, and in fact have every incentive to vote for larger Medicare and SS benefits because they don’t even have to pay for those anymore. No matter how high the FairTax rate would need to be jacked up to pay for more ‘gimme’ spending programs, their prebate will also be increased enough to cover their higher taxes at the cash register.