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I understand your concern but what you describe is a value added tax or VAT. This is another insidious European idea that hides government tax rates and meddling from their citizens. A national sales tax is a tax only at the retail point. Presently the Fair Tax is a national sales tax proposal that has merit. BUT and it is a big BUT, before we pass a national sales tax a Constitutional amendment to prohibit income tax at any level must be ratified and implemented concurrently with implementation of a national sales tax. Further, I believe we need a constitutional prohibition against all taxation except retail sales taxes. By by property taxes and with them enslavement to local politicians.

While I support the Fair Tax as a vast improvement over our current system I do dislike its prebate system though it is not a deal breaker in my view. Essentially, the prebate system is designed to protect lower income people and others against the effect of the sales tax. By doing so we once again set up a group of people that are protected from the consequences of votes they make that expand government. In my mind the prebate is essentially an idea carried over from the income tax system...that is a tax deduction. I believe there should not be a prebate rather overall sales tax rates should be lowered accordingly so as to minimize the sales tax impact. To be revenue neutral the sales tax rate would have to be in the 20-25% area. Lower some what with no prebate. This rate covers all income taxes including the "payroll" taxes. The greatest benefits of a national sales tax as I envision it is everyone pays their fair share of the government burden. Every time you buy something you are smacked in the face by the cost of the government you elect. That'll give the libtards something to think about. And it takes a great deal of power away from government. Check out http://www.fairtax.org to get a better explanation than I can give about the benefits a national sales tax can have.