The idea of the United States government sending a monthly check to every household in the US is a mechanism of socialism at its worst; it is communist-style income redistribution
Redistribution is taking it from one and giving to another. That doesn't happen with the prebate. It is provided to an individual who then spends it back to gov't. No redistribution is taking place.
The reason for the prebate check to all families is to eliminate the need to identify specific items for exclusion and to eliminate the need to track income, as that would open the door to manipulation and politics... exactly what we want to avoid.
If somebody were to try to increase the tax rate, the rate would go up equally on EVERY SINGLE INDIVIDUAL WHO BUYS ANYTHING- every kid, every adult, and most importantly, every single voter.
In today's system, pols can raise taxes continually by playing cat and mouse with who is paying what- giving favors to contributors, playing class warfare, pretending business pays tax.... that all goes away under the nrst's preabte system, which is NOT, btw, redistribution.
And since many states already exempt food, etc. from sales tax, it isn't as if there is any complication in doing so at a national level as well.
Did you know Doritos is exempt but Fritos aren't? Did you know bologna is exempt but hot dogs aren't?
This type of political control over what food "is" ... is so infantile. Simply exempt all necessities as defined by the purchaser.
When taxes through such a mechanism are raised to confiscatory levels, the result is a reduction in consumption (and a direct reduction in tax receipts) that is rapidly apparent to government. In other words government can be immediately shown the folly (damage to the economy, and loss in revenue that it receives) of excessive tax rates, something that is somewhat missing from our current (hidden) tax system
Indeed. This is the assertion made by Alexander Hamilton in the Federalist Papers.
Remember the prebate is not REdistributing anything. It's a wash by individual. Its function legislatively (politically) is to eliminate the tax on necessity. In reality, it helps remind EVERYONE, even the poor, that government has a price.
Even if you're at the poverty level, you'll have to reach in your pocket and cough up the green for your taxes... every time you buy. Of course, the prebate would prevent you from having any net tax liability on necessities, but having to pull green from the pocket is a nice effect IMO.