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LOL, you know as well as I do there is not a specific “page number” that says any bureaucracy will be created, but it is implied throughout the book and other documentation as well. Something or someone has to manage the thing.

Indeed that is another problem with the “Fair Tax”, it is weak on details. However anyone with a moderate amount of intelligence that can read will deduce that some form of bureaucracy will have to administer this beast.

The “getting rid or the IRS” sounds great but all that is really happening is the task will change and be moved around either with in the current bureaucracy such as Social Security and DHHS or to an entirely new system. So let see where there are problems that any reasonable person would question.

First who administers the checks and verifies that recipient data? Certainly it is reasonable for me as a citizen to expect the number of children reported etc. to be audited to some degree.

Say the treasury is assigned the job of sending out checks. Like you said, they geared up for this “rebate” we are getting now, but you are now talking about checks to almost every household at least 4 times a year. While it can be done, it is not going to be free.

One of the things I mentioned about the “Fair Tax” was how much it is based on everyone doing the right thing and everything coming together just so. You made mention of people not being anymore prone to gaming the system under the “Fair Tax” as they are now. I disagree, because this tax has more areas for such issues to occur. Who is going to make sure every business and other entity that collect this tax is reporting correctly, either by malice or just bad accounting? Who is going to make sure businesses don’t use the loopholes that will exist (new verses used goods and the like). There will have to be some form of enforcement and audit control here as well. That is just not going to come from the sky.

One last point and I will move on to my example on one of the issues of the “Fair Tax”. There is built in to it a way to evade taxes that is legal and “fair”, just don’t buy anything new. Of course one would have to buy food and such, but a large part of what drives our economy is the purchase of so called “luxury goods” the extras the one does not need to survive. It is assumed that will go on as before due to the new pricing structures that are supposed to evolve as well as this so called “keeping all of your paycheck” (another misleading sales point BTW”). I don’t like little explored assumptions to be the basis of my tax policy nor a part of something that could fundamentally change the economy.

Now to one of my issues with the “Fair tax”.

Let us say the “Fair Tax” passes in 2010. In 2012, once the transition has been done for a while I, as a home builder, build a new house to sell. I am going to want to charge 200,000 dollars for it. That should then generate, at 23%, a 46,000 dollar tax. What line item does that fall under on the closing forms and where will that money come from?

Answer that and we will go from there with my example…