The biggest lie of them all.
First of all, you're going to exempt tens of millions of "taxpayers" with the monthly federal stipend. Plus, everyone is now part of the new welfare class and beholden to the federal government -- say goodby to privacy if you want your monthly "prebate" check. Think it will be a Katrina-type debit card?
Second, anyone breaking the law today and not paying income taxes will find a way not to pay the fair tax. Please. That's what they do.
One way (for anyone) is to simply incorporate their business -- the prostitute is now a "consultant", and the clothes, the car, the "home office", she buys are now untaxed business expenses. I see an explosive growth in Sub Chapter S corporations.
Third, a 30% Fair Tax coupled with a 3% State Income Tax, coupled with a 7% State Sales Tax, coupled with a 10% City Sales Tax invites cheating. Half the cost of a product is tax! Plus I still have to pay property taxes!
Forget about the prostitutes and drug dealers. You're going to bring back the barter system, especially in the sevice sector -- the dentist gets a new roof and the roofer gets some dental work. With the IRS gone (right?), who's going to check on these things?
Fourth, any money I currently have in savings is now worth 30% less. Thanks.
Fifth, who's going to buy new products? Expect a surge in tax-free "used" products, whether they're used or not.
Lastly, as a result of all the above, federal income will fall far below expected levels resulting in ... an even higher Fair Tax.
You better sit down. I'm afraid that as fast as you are spining that you might fall and hurt yourself.
What is the bill number of the plan that you support?
Who introduced it. How many cosponsors? When did this, or any, president say that he'd sign it into law?
Who buys used food? Everyone will pay tax on food.
Why did people buy $8000 for a TV a few years ago that cost less than half of that now? Why do people buy new Mercedes Benzs when they can buy a slightly used one for a lot less?
To cheat on the income tax, all you need to do is file a false report. To cheat on the FairTax, you need to enlist another person in your scheme. Each will have to wonder if the other will turn them in if that other person is caught.
There will still be sales tax audits if you are claiming an exemption for you purchases, you will have to justify your purchases and declared exemptions. There will only be about 14 million filers compared to 140 million now. There will be enough auditors.
Right now, your savings are not safe from the tax man. There are plenty of taxes and penalties, not to mention lots of hoops to access your money with taxes.
I'm going to put you in the Status Quo column since you refuse to answer the questions asked above at least 3 times now. My comment here were more for those who might read your nonsense than it was for your own edification.
I'd just like to know what it is that benefits you so, that you place it above the general welfare of this nation and your own children, nieces, nephews, friends, etc.
NO ONE is "exempt" under tha FairTax, let alone you're grossly misstated "tens of millions". everyone pays the tax when they buy taxable things at retail. Nor is the prebate a "stipend", either. It is, instead a refund of tax money you pay much like the refund many get on April 15 from their ovrerpaid income taxes.
Also, receiving the prebate doesn't alter your privacy at all - you actually have far less privaCY under the present income tax laws and regulations and report much more to the government since with the FairTax, no taxpayer is obligated to interact with any government about taxes.
Oh, and it probably not a monthly "check" at all but a wire transfer directly to your bank account. In addition, no one will have an effctive tax rate of 23% tax inclusive. It will always be oess than that due to the action of the prebate.
Everyone of your evasions schemes would be easily defeated and would only end with the lawbreaker (who would be a business collecting and remitting the tax - not the taxpayer) either fined or jailed or perhaps both. And why should ht collude with the taxpayer to help the taxpayer if he gets nothing for his trouble. Perhaps you're saying a business will merely collect the tax and keep it, thereby commiting a federal crime - and one that is easily traced.
There will actually be fewer evades under the FairTax than under the income tax since at present there are many, many ,millions of those in the illegal economy evading the incopme tax - and the incentive to do so ois much greater on a percentage basis that it would be with the FairTax (and FairTax wiolations are more easily detected also). So your Sus S scheme is nonsense. It's easy to tell you haven't read the bill and know nothing about it, but are merely trying to defend the Status Quo. Guys like you are knows as Squirrels on these threads.
And your moronic adding of dirrerent tax rates (mixing tax-inclusive and tax-exclusive to suit your purposes is completely incorrect and off-base as well) You can't add the different rates in that fashion and end up with anything but mush. Further, the states will no doubt elect to conform their tax laws to the FairTax and do away with state income tax which would actually have the effect of lowering the state FairTax rate to about 1/3 of the present state sales tax rate extant in most states. You've obviously not looked into the matter or even throught about it at all. You just spout nonsense and trivial claims.
Money presently save will be taxed under the p[resent system when you spend it - by the increased prices due to tax costs embedded in all you buy. In fact, under the FairTax you'll do quite well with that money as is shown in this post. In fact, it's very clear from all the economic studies on the FairTax that the rate will need to be lowered, not raised since it will bring in far more than the present income tax system - with far less taxpayer trauma.