re: Questions about a federal fair tax.

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It makes no sense to focus on current spending as the mark to hit.

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Wait what?

What other tax revenue streams will be left to replace the income tax?

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To compare apples to apples, you need to replace the personal income tax number

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Exactly

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is about 2.2T

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Cool. point stands.

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It makes no sense to focus on current spending as the mark to hit. Obviously, that would be a HUGE tax increase.

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Agreed. It assumes everything we buy is inelastic which is certainly not the case. When the cost goes up 50% you buy less, no matter if you aren't taxed on your income or not

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EQUATION. Yes it does you saod so yourself. To get a prebate you'd need to be low income. The government just knows your income automatically,?

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It's going to be based on the poverty line. Everyone gets the prebate. You don't have to be low income to receive it.

And ftr, these guys waaay understate the compliance burden but to be critical of the fair tax you should understand the mechanics.

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All households under the plan would get what's referred to as a prebate at the beginning of the month that's equal to the amount of tax that's anticipated to be paid for that household's size, as well. This eliminates the tax burden for those at/below the poverty level, retirees, etc.

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Not quite sure where our mental midget has found room to misinterpret my statements, but it stands for itself.

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So UBI fans should love it.

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I maintain that if a liberal came up with the plan instead of a GA Congressman who took over Newt Gingrich's district, they'd be shouting about it from the rooftops.

I'm perplexed by the folks who are so quick to go "nuh-UHHHHHH!" about the continued existence of the IRS or whatever compliance agency from the Treasury would take its place being some manner of gotcha about the NRST. These become entities whose existence are wholly unrelated to individual families.

The bottom line is that for 155M US taxpayers, the Internal Revenue Service goes away. Right now in every state in the union, there are compliance/investigation agencies that work for each state to process and ensure that sales taxes collected by retailers are properly submitted. Ditto if your state has a lottery program. Folks follow up on the retailers in that capacity, too, just like they do for any location that accepts WIC/food stamps/EBT.

This has zero impact on me as an individual wage earner. Any federal iteration that is tasked with similar responsibilities would have the same absence of relevance in day to day life.

I'll post again. Just come out and bite the bullet: You hate poors and your only mission is to eliminate the IRS consequences be damned.

Establishment will never eliminate income tax. Both parties use it for power

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There is simply no evidence backing up your assertion that the compliance burden on businesses is lessened even in European jurisdictions that have gone more VAT than income tax heavy.

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Exactly. Vox is talking out his arse about "no compliance burden" on business with his "FairTax".

The way he describes is essentially a national sales tax or VAT and that is a pain in the arse for businesses to deal with now.

The audit process is a nightmare and now you have monthly filing and remittance of taxes to deal with.

It will be a huge compliance burden but those dirty poors will finally pay so it is fair. Well fair in his mind at least.