You know what...I am sorry for the snarky remarks I have made to you. These are not right and I should have never made them. You may have some great points to argue and I should listen. You have not wasted your time and maybe this pig can learn to sing.
With regard to the OP, Cruz’ idea of a “postcard” tax return will still require an “IRS” of some kind. That makes his argument ridiculous. His contention is that this is a “flat tax” idea. But, the problem (as you know if you are truly a “taxman”) is determining what “income” really is. That is what takes all the schedules (B, C, D, E, F, 4797, etc.). Even with just deducting a “standard amount” and taking home mortgage interest & donations (his view) there will still be cheating and the need for an “IRS”. And, I don’t work for them.
Your contention for the “fair tax” is really a move to a consumption based sales tax (far different from Cruz). It has its own problems of administration and would require an “IRS” to deal with all of the companies reporting. Do airlines file on their sales? Do service companies file on theirs? The states would have to double in size for their Revenue Depts. to handle audits, so now the cost is on the state. Additionally, the economy will collapse if everyone buys online offshore with a neighboring country sans tax. Help me understand how this is an improvement.
Dutchboy88, I accept your apology. Please accept mine, as well. I, too, was snarky. I should have been more helpful.
Senator Cruz has good intentions, he just cannot think outside the income tax box. And to postulate that the flat tax will result in a less intrusive IRS is folly, IMHO. See my comments re: intrusive IRS in my conversations with foxfield, a CPA. He makes good points. HST, an income tax of every kind DEMANDS an IRS be in place to “administer” it.
The FairTax will be collected by the respective state sales tax agencies. A state can choose not to collect the federal sales tax, and either outsource the collection to another state, or opt to have the federal government collect it directly. Somehow, I believe the 5 states with no sales tax will set up their own agencies.
Each state sales tax collection agency, and each retail business that collects the FairTax will be paid to do so, to cover their administrative costs.
With respect to your comments re: airlines and service companies, there are roughly 5 million (best number I could come up with) retail businesses in the US. As you can readily understand, there are far fewer companies to monitor and audit than there are individual tax payers. Under the FairTax, an individual American who does not own a retail business, will never see a tax collector.
That, to me, makes the FairTax a no-brainer!
With respect to off-shore purchases, FairTax will be levied when the item in question is imported into the US. The mechanism is in place and is used today.
Hope this helps. For more information, go to http://www.fairtax.org/site/PageServer?pagename=FAQs