It seems to me that the fair tax has to raise as much or more money than the current income tax system does. So the question is, who will benefit and who will get slammed?
Right now I pay a 15% tax on my investment profits but under the Fair Tax plan I will pay 30% up front for the security and then hope for a 10% gain each year. So for an average investment it will take me 4 to 5 years to break even, if the stock does well? That sounds like a prescription for disaster. All new investing will immediately cease and the Great Depression will look like a time of great prosperity by comparison.
Do you honestly believe Congress, which continuously passes complex laws with loop holes for "contributors" (read bribers, conflict of interest etc) will do away with the legal profession's full employment guarantees? If the legal profession were about right and wrong and correcting injustice, it should be Socialized. However, the legal profession exists for one reason and that is BILLING (greed, graft, fees, contributions, honorariums or whatever you call it.) See item 5 below.
With respect to the "Fair Tax",
1. ... and the entity that ensures that the Fair Tax is collected and will be paid is called...?????
2. Congress passes the tax laws. IRS implements them. Will Congress be abolished?
3. IRS is a "straw man" for Congress to beat up as the "bad guy". Even when IRS is correct, Congress forces them to confess to errors or Congress keeps going etc.
4... and who enforces Title 26 with God only knows how many sections,and what will they be called? All the 'old" law violations will be thrown out?
5. Congress is almost entirely ALL lawyers. The more complex the law the more lawyers are needed. Dealing with IRS requires a Lawyer(s) or an Accountant. All tax appeals to tax court (more Lawyers posing as judges) require a Lawyer - ad nauseum.
I am sure there are a myriad of reasons the Fair Tax won't be passed, but no sense destroying the dream of many who appropriately hate making out ever more complex tax returns.