Your scenario would require keeping track of everyones expenditures and taxing more as expenditures went up... Under the income tax we have a proxy for expenditures in that income is reported,, not so with the FairTax.. Did you think that through at all? Do you think that you will be asked to “show you papers!” when you buy a bar of soap so the merchant can report that you bought the $15 Victorias Secret softsoap rather than your usual $1 Ivory bar soap..
I’ll give you another try at it .. have a go!
It wouldn't require any tracking.
Raise the sales tax 2%, get it? Everyone gets another $1000 prebate, get it? If you spend exactly $50,000, you break even, get it? If you spend less than $50,000, you're better off, get it? If you spend more than $50,000, you're worse off, get it?
I’ll give you another try at it .. have a go!
You first. ROFLMAO!