re: Tell the Trump Transition Team about the FAIRtax!

My hesitation is putting all the eggs in one basket.

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could dissolve the IRS?

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So who handles administration of the prebate?

More importantly, what does the prebate cost?

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FairTax would kill the real estate and automobile industries. Can you imagine paying over 23% in sales tax every time you bought a new one

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Price would not change due to the elimination of embedded taxes you are paying right now on a new car.

Study up a bit.

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If what you claim is true, and the price of goods would stay the same, then the Fairtax is only going to generate the same amount of revenue as current corporate income taxes.

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Correct. As written, the bill is designed to be revenue-neutral to the current tax structure. Could Congress pass a higher rate eventually, raising taxes on everyone? Yes, they absolutely could, but part of the responsibility of average Americans is to hold their representatives accountable for their actions. They can vote to raise your income tax rates today, too.

With the current lobbying environment, the K Street folks are often the first ones to hold Congress accountable. The American people have to keep their Congressmen's feet to the fire.

Remember - Constitutional amendments are possible through a Constitutional Convention. If you get 34 state houses to vote for it, then Congress be damned. (Apologies for a CNN link, but the content of the article is solid).

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So steel, tires, car radios, etc aren't considered a point of sale? How does that work? You do know that dealerships effectively purchase the cars from manufacturers and resell them to customers right? How about the machines and manufacturing plants that build the Products? Isn't there tax on that?

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The FairTax is a single-rate, federal retail sales tax collected only once, at the final point of purchase of new goods and services for personal consumption. Used items are not taxed. Business-to-business purchases for the production of goods and services are not taxed. A prebate makes the effective rate progressive. - See more at

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: LINK

I didn't answer your question about the prebate simply on the basis that I don't have a definitive answer, myself. I would venture that there would be a division created within the Treasury with an analogous structure to that of the Social Security Administration payments divisionp, given that they already make monthly payments to millions of eligible Americans.

What's more telling, however is that I've supplied multiple links to the FairTax.org website (specifically the FAQ page) and you're choosing to have an Internet stranger spoonfeed you answers rather than educating yourself to your own satisfaction.

You can do it man. I believe in you.

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The fair tax would be just as difficult, if not more difficult, to enforce.

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Disagree. Current system only the cheater has to cheat. Under the Fairfax the consumer and the business would have to cheat. Huge gamble for a business.

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I can assure you that the overall savings by dissolution of the IRS will more than adequately pay for a relatively small replacement organization who administers the prebate. It would certainly be dwarfed by the existing bureaucratic monstrosity that is the IRS

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The IRS costs around $13 billion to run. Lets say you save every penny of that and our budget decreases every year by $13 billion. Thank goodness for all that savings...

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As for the percentage of Federal revenue that is income taxes (both personal and corporate) and what would need to be replaced with a NRST, you're failing to account for a more than 500% expansion of the tax base by shifting the point of taxation to be consumer-driven.

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I'm not failing to account for anything. You made the following claim...

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Approximately 21-23% of what you're currently paying for literally EVERYTHING are embedded corporate income taxes which are passed along to consumers from each step in production/distribution. Corporations don't pay income tax, they merely collect it from consumers. When you spend $1.00 for an item, the actual cost of that item, (margin and everything) is about $0.77. Everything else is a sliver of the income taxes that get passed on to the final consumer.

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So EVERYTHING we purchase NOW has a 21-23% markup to account for corporate taxes. So EVERYTHING we already buy has the same markup as it would under the Fairfax. So the Fairtax doesn't generate any more revenue than current corporate taxes. Current corporate taxes account for less than half of our current revenue. It cannot replace the $1.7 trillion dollars of income tax without significantly increasing the % markup over the current 21-23% that you claim exists.

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you're failing to account for a more than 500% expansion of the tax base by shifting the point of taxation to be consumer-driven.

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There is no expansion in the tax base according to the argument you made in the quote directly above. According to you, consumers already are taxed 21-23% to pay for a corporation's tax liability. The tax base is already anyone who makes a purchase in this country. You want to take away that 21-23% and add it right back and somehow generate more revenue than you are now. The math doesn't work.