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It would also mean a larger government tax force to attempt to curb the dramatic reduction in receipts as non-corporate stores take cash in order to avoid the tax, meaning more government spending on enforcement and the likelihood of harsher penalties. This spending is planned to be dumped on the states; where is California going to come up with the money to fund this idea when it's $20B in the red? If it's a national tax, you can bet there will be a federal overseer, and here comes the IRS again, just this time it's the Tax Assessment Bureau.
Fair tax is supposedly pro-business. I would like an Austrian-school-educated economist to analyze the fair tax further. Freedom is kinda a big deal.
Our tax structure currently, and the fair tax structure which is proposed, is keeping our businesses weak in comparison to global competitors. Low taxes mean low prices and a consumer base with more disposable income. When you add difficulties like collecting and sending in tax revenues, the businesses have to add more workers for the same profits. Gross income goes down, or prices go up.
Kingkilburn, there is no way to have a tax thread without bringing up the idea that taxation is wrong. Any discussion of taxes, especially one of a tax purporting itself to be fair, must have an opposing side; I'm not just opposing the fair tax but taxation in general.
I would like to add this question: How is this tax fair?
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