The taxes are a retail sales tax. The plan could be to monthly refund a portion of those taxes or to credit those taxes ahead of time and it would come out to the same thing.
The plan chose to issues the refund as a credit up front instead of after the fact.
Just the same, the person will still pay taxes on retail sales with that money and any other money that person spends.
You are avoiding some questions.
What kind of people will not be spending money at the retail level to the point that the prebate would be an economic boost for them?
How many people do you estimate will actually come out ahead solely based on the retail sales tax credit?
An adult with 4 kids will get a monthly credit of $462 based on estimated consumption of $24000 per year. Whether that payment is made before or after the month is really irrelevant since it offsets a portion of the retail sales tax that they pay that month.
For this family to not pay any taxes at all they would have to avoid all retail sales and that is not probable, even if possible. It is possible for there to be a net tax payment of zero dollars but at that point one is probably living a lifestyle that most of us do not wish to emulate.
So I’ll ask you again to please describe those you see as receiving welfare in the form of the Fair Tax prebates.
As described above, anyone who gets a prebate larger than their FT "gift" to the gov't for that month (cash or accrual accounting - no difference)is getting welfare. Wealth transfer FROM the gov't. It's a simple definitional situation and it could happen more than once. Read the welfare book.
Who knows how many, it only takes one to make it true that it is welfare. But once people are incentivized to not spend there will be an increasing number. Just the way things work.
It's neither. The monthly stipend goes out regardless of how much or how little tax is paid by the recipient.