I fully support the Fair Tax as it is written in HR 25 and S122.
However, once that sucker gets sent to committee, it will be corrupted into a VAT tax on everything. Income taxes will not be overturned.
Be very careful what you wish for.
The FairTax repeals the 16th Amendment so there is no possibility of a VAT being formed from committee. Because with repeal of the 16th amendment the tax provisions of the US Constitution revert to the original clauses. In particular Article I, Section 9:
“No capitation, or other direct, tax shall be laid, unless in proportion to the census or enumeration herein before directed to be taken.”
“No tax or duty shall be laid on articles exported from any state.”
“No preference shall be given by any regulation of commerce or revenue to the ports of one state over those of another: nor shall vessels bound to, or from, one state, be obliged to enter, clear or pay duties in another.”
A VAT is a tax on business production. But production is geographically fixed and therefore subject to state laws having jurisdiction. A VAT would then be in conflict or intractably formed with Art I, Sec. 9 clauses above.
I see no possibility of a VAT surviving constitutional review and scrutiny in committee.
In fact a VAT does not exist in the USA today because the 16th pertains to income and not excises or imposts.
Europe and Canada have a different basis for taxation and so a VAT arises legally.