[DeeOhGee]

I like the idea of the fair tax, and find little with the proposal to argue with, and nothing major at that. My only concern is what provisions are there to ensure the tax rate doesn't jump when the fedgov continues to spend like a drunken sailor?

[Turbopilot]

I like the idea of the fair tax, and find little with the proposal to argue with, and nothing major at that. My only concern is what provisions are there to ensure the tax rate doesn't jump when the fedgov continues to spend like a drunken sailor?

The limitation on the rate is imposed by the fact that whatever tax is imposed applies equally to everyone at all times. No more "richest 1%" rhetoric, or "only taxing rich businesses", or taxing marriage, or family estates - if the government wants to raise the FairTax, they have to raise it on everybody, which won't be popular with politicians who want to win elections.

[ovrtaxt]

That's where the average American comes in. If they want to raise the rate, they have to face hordes of PO'd constituents. It works in FL. We have been at 6% forever. If they talked about raising it, people would blow a gasket!

[phil_will1]

"I like the idea of the fair tax, and find little with the proposal to argue with, and nothing major at that. My only concern is what provisions are there to ensure the tax rate doesn't jump when the fedgov continues to spend like a drunken sailor?"

The FairTax is a tax reeform, not a spending reform proposal. Having said that, it is going to be much harder for the federal government to raise the rate once evryone is paying the same rate and our congress members can't play off one set of voters against another.

In addition, Hamilton said it brilliantly.

"It is a signal advantage of taxes on articles of consumption, that they contain in their own nature a security against excess. They prescribe their own limit; which cannot be exceeded without defeating the end proposed, that is, an extension of the revenue. When applied to this object, the saying is as just as it is witty, that, 'in political arithmetic, two and two do not always make four.' If duties are too high, they lessen the consumption; the collection is eluded; and the product to the treasury is not so great as when they are confined within proper and moderate bounds. This forms a complete barrier against any material oppression of the citizens by taxes of this class, and is itself a natural limitation of the power of imposing them."
Alexander Hamilton in Federalist #21

[Mind-numbed Robot]

My only concern is what provisions are there to ensure the tax rate doesn't jump when the fedgov continues to spend like a drunken sailor?

Because it is tied to the market, it is self regulating. The higher the tax the fewer the taxed purchases, the lower the tax take and the slower the economy. Politicians usually can ignore the reduced revenue by increasing deficit spending but they cannot ignore the political repercussions of the effect on the economy. That provides a brake on their ambitions.

[pigdog]

Those provisions are called "voters" - and they'll be much more effective at correcting that sort of nonsense with the FairTax.