Keep in mind that the National Retail Sales Tax (NRST) component of the FairTax legislation (HR 25) is a RETAIL only sales tax and is not a VAT.
The FairTax abolishes the IRS tax code (every federal tax, income, cap gains, business profits, everything) in toto and requires repeal of the 16th Amendment within 7 years.
Again the FairTax ‘removes’ all taxes that accumulate business-to-business (B2B) in the production and supply chains and then ‘replaces’ them at the ***retail end*** with an NRST.
So the FairTax is not and cannot ever be a VAT. Keep that in mind as we move forward to repeal the 16th Amendment, we will need the FairTax to fund government.
This will become a larger issue as peoople gradually learn that it is the 16th Amendment by which the courts will reluctantly uphold Obamacare, hence we need to repeal it.
As this issue gets broadcast, do not allow the Left to blur and confuse the distinction between a VAT and the FairTax.
More info that the FAIRTAX IS NOT A VAT is found here (6th caret item from bottom):
http://www.fairtax.org/site/PageServer?pagename=about_faq_answers
I think 7 years is too long. They’ll try to keep the income tax and NRST for as long as possible. Or they’ll just try to amend the Fair Tax Act to keep some form of income tax.
Another thing I have issue with is that I’ve read it was designed to fund our current-size government. I think the rate should be far lower than 23% so as to force government to shrink and operate at a smaller budget.