The FAIR tax is entirely too complicated, especially if it includes the horrendous “prebate” and too open to fiddling. Normally the percentage is fixed way too high by proponents because they want it to be”revenue neutral” and supersede all general taxes including state levies which would further erode the sovereignty of the States. It appears to be a centralist scheme.
Post 50 by ctdonath2 seems to offer an answer to that objection. Institute a Fair Tax type consumption tax at the state level. Let each state determine how best to contribute its fair share to fund continuation of the Union.
Good points but let me address in rapid fire.
I do not think the prebate is horrendous and even in the current income tax scheme should be considered and dump the multiple assistance programs. For years, many distinguished conservative economist have advocated this via earned income tax credit.
I agree with point #2 on the revenue neutral and would put in reduction targets. I also disagree with some FAIR tax people and want the sales tax itemized on the sales receipts.
I am not sure how a fed sales tax erodes local sovereignty any more than having local, state and federal income tax.
I also would never implement the FAIR Tax without repeal of the 16th ammendment. The ammendement to repeal the 16th ammendment should make it clear the federal government can not tax income to clarify in SCOTUS case law prior to 16th ammendment.