A fair tax is a VAT tax. How do you assume the IRS goes away with a fair tax? I hate that word ‘fair’ because the Leftists have so mis-used it.
How do you know that if a fair tax isn’t enacted that it won’t be changed like income tax was?
Gotta jump in.
The “fairtax” is a national RETAIL sales tax or nrst. It is the polar opposite of a VAT.
The nrst shows the tax amount on each receipt. There is no more withholding. There is no more FICA tax. There is no more business tax hidden in higher prices, lower wages, or reduced ROI.
The flat income tax however IS a VAT. It is a “subtraction method VAT”. The flat income tax retains withholding. The flat income tax retains both ee and er FICA on top of the income tax. Business still must pay income taxes and pay them in by charging higher prices, paying lower wages, or reducing ROI. The flat income tax hides taxes.
How can you insure a Flat tax won’t be manipulated? Flat taxes still require you (and businesses)to file the evermore invasive income filings, detailing every source of revenue and expenditure. None of the governments’ business! Flat taxes still tax behavior that we want to encourage (earning, saving, & investing). Flat taxes leave the IRS with full power.
The Fair Tax is ONLY levied on NEW items at point of CONSUMER purchase. It does not tax earnings, savings, or investments. Does not tax used items or used property. Does not require you to file any earnings report. Does not steal money from your paycheck before you see it. It cuts the IRS by 90%, with their activity being directed towards verifying business sales tax filings.
Fair tax also neuters politicians, since they cannot give state or federal tax credits to corporations in exchange for support.
Please look into the Fair Tax more thoroughly before dismissing it.