Everyone is eligible. There is no determination. It is based on family size.
Correct. It's equal to the Fair Tax times the poverty rate for a family of different sizes. A family of four, for example, would pay no Fair Tax on the first $19,000 or so of what they spend.
But let's take a family of four where the wage earner makes $18,000 at McDonalds. This is a family in poverty. Today, he pays no taxes. That entire $18,000 is disposable income. A loaf of bread costs him $1 today.
Under the Fair Tax, he still has $18,000 of disposable income. We're told that prices won't rise, meaning that a loaf of bread still costs $1. (We've eliminated the hidden and embedded taxes and the tax is now visible.)
Why does this guy need a prebate? A prebate to offset ... what? He makes the same, he spends the same, he receives exactly the same in goods.
Why are we giving him (and everyone else in the country) $500 per month?