“MY idea is to just not issue ‘prebates’ at all. At the same time, do not impose the ‘fair’ tax on food, medical care and pharmaceuticals, primary residence, or energy (necessities).”
I’m afraid you’re falling into a big trap. That’s a huge part of the tax base so you’ll end up with a higher rate on everything else.
The prebates are a big problem since the government can’t issue SS checks to only a portion of the taxpayers without making approximately 9 million errors annually. How many errors and at what cost will it be to issue monthly prebate checks to all taxpayers? This is a cost that we do not need, even if we choose to go to a consumption tax of some kind to replace the IRS.