"Why do you keep saying this when you been shown it's not true. For every dollar the government pays in taxes they get that same dollar back in revenues. You are just changing the expediture/revenue scale. Where's the disincentive to keep spending?"
-- That is only technically possible at the Federal Level; all other levels of spending would be restricted. Furthermore, the Federal government would also have to pay any state and local sales taxes in the municipality their located in. In states where the state sales tax conforms to the tax base of te federal one, this is huge.
"For every dollar the government pays in taxes they get that same dollar back in revenues."
-- That is patently false. Have you ever heard of transaction/collection costs? It only may be a few pennies on the dollar under the FairTax, but that still means that (with a 5% transaction/collection cost) $1 spent = $.95 in revenues.
-- There are other reasons that federal spending will be restrained as well.
Furthermore, the Federal government would also have to pay any state and local sales taxes in the municipality their located in.What makes you think that?
That is patently false. Have you ever heard of transaction/collection costs? It only may be a few pennies on the dollar under the FairTax, but that still means that (with a 5% transaction/collection cost) $1 spent = $.95 in revenues.This is patently false. The collection costs are .25% for the business and .25% for the state. 99.5% goes back to the federal government. $1 spent = $.995 in revenues.