The Fair Tax is a wrong headed sales tax that will do as much damage as any other tax.
Look at the way cash moves through the nation. Money flows into the hands of individuals (or companies) and out of their hands. If we do not capture a bit of this flow (in both directions), we will find the individuals (or companies) going offshore for the other side of the transaction.
eg, if you abandon income tax, in favor of a 28% sales tax, then people will make all the money here, and spend it on internet purchases from other countries. Oila’ NO REVENUE and damaged economy.
If you abandon the small sales tax, then people will attempt to earn money elsewhere and will spend it here. Oila’ LOW revenue and damaged economy.
We need a small sales tax and lower income tax. Then, consumers and earners will both participate in the cost of running this gigantic enterprise.
> “If we do not capture a bit of this flow (in both directions), we will find the individuals (or companies) going offshore for the other side of the transaction.”
Oh really? So if we buy goods overseas for our use purposes at home, how do you propose getting these goods back into the USA? Smuggling? Are you suggesting that all American companies and individuals become lawbreakers?
I don’t know about you but if I buy a car overseas and ship it back here i will end up paying more especially when I try to register it and have to pay customs.