23% is a bit too high...that will encourage gray and black markets to avoid paying the tax.
That’s why I like the 999 plan as it keeps each tax low enough to make it easier to just pay it vs. trying to find ways around it.
Fair tax does away with 2 of the 9s, the corporate tax and income tax. That give total control over taxes to the taxpayer.
One benefit of both plans is what happens to embedded taxes. These hidden taxes comprises 22% on every item we buy - you do not see them but they are part of the cost of every prodct.
Under Fair Tax, the embedded tax goes away. Under 999, the embedded tax is greatly reduced.
All systems will have some element of evasion/fraud. Our current system is rife with it.
23% is not bad if you pay no income taxes and make the same money you make today.
I agree.
And the enforcement against such black marketing will have to be that much higher than it is now.
Not to mention my philosophical and practical concerns over the prebate.
In fact, my biggest beef against the triple nine plan is that it is being touted as a middle step to the fair tax. I am fine with it needing to be tweaked over time, but not with that particular end game.
That’s why I like the 999 plan as it keeps each tax low enough to make it easier to just pay it vs. trying to find ways around it.