I don’t see that. The Feds know that any FT they pay on a purchase comes right back to them, so there is no equal footing. It is just an accounting entry for both the seller & the buyer. And why the need for equal footing, anyway?
“Changing the way we collect revenue is ESSENTIAL.”
I totally agree, but combining welfare with tax collection does not sit right with me. If the gov’t wants to send poor people money, let that be another program, & forget the idea of putting the entire population on the dole every month. The prebate really has NOTHING to do with tax collection. I really like a retail sales tax, exemptions or not. But I will never support the prebate, a casino owner’s dream come true.
And do you really think the pols are gonna allow sales taxes on baby formula, medicine, ....... & 100 other items that would be “cruel” to tax. Oh, they may start out with no exemptions, but when Kerry, Kennedy, Reid, & Co. weep uncontrollably on the Senate Floor while telling the story (with video) of some poor cripple child who can’t afford a Hover-round because of the 30% Federal Fair Tax, you can be sure wheelchairs+ will be exempt. Better to specify a humane set of exemptions from the beginning, & fight hard to minimize amendments.
I counted 26 states + DC that don’t tax food here:
http://www.taxadmin.org/fta/rate/sales.html
Looking at this list, I don’t see any states with exemptions that are bankrupt or have people agitated over sales tax exemptions - some are quite wealthy states. I’m gonna guess that no state with a sales tax but no exemptions sends a prebate check to every one of its citizens. Wonder why?
Couple things.....the Federal Government currently pays FICA tax on their employees. That’s government taxing itself. The Fair Tax is no different in that respect. Without the “equal footing” the government will become the preferred provider of everything.
The Fair Tax will NEVER pass without the prebate. That portion of the law makes the tax rates truly progressive. The Democrats will never pass a regressive tax “against the poor.” Can’t you just hear the demoguery and the wailing and the rending of garments? I don’t like it, but I realize that without it, the FT stands ZERO chance.