Looks to me that Mr.Worstall didnt study HR 25, or at least read The FairTax book.One of his point, regarding “the government can stipulate that all retail sellers provide buyers with a written receipt, regardless of whether the transaction is or is not in cash” is already in the FairTax. Another point what he is missing, when is comparing FairTax with VAT, that under a VAT, all embedet taxes still exist, or under FairTax will be eliminated.This one point, by me, its the most important.Means that all product will have a price drop of 22-30%. If you add the FairTax of 23% basicly the price remain unchanged.
For Mr.FairtaxFraud:
I can bet, that you are just repeting some talking point of sone poilitican who is afraid of loosing his power. I will try to give you just a small exemple. Let say you are one of those “poor”, but even then you have to buy the strict neceseties.Let assume that you are now in the 15% bracket.
Under curent system, in order to buy a $100 product, you have to make $115. And keep in mind that 22-30% of that $100 are enbedet taxes, which make the real price of the product only $70-78.
Under FairTax, the same product will cost you only $100 (no income tax),$72 the real cost + $23 tax.
But…and here is the main ideea, witch most of the critics are missing it. You have a PREBATE. As the FairTax is mentioning, at the begging of the mounth every persone will get a check from the goverment witch will cover the sales tax for basic neceseties. That is like you are not paying sales tax.Bottom line, for you as a “poor” persone is that instead of workinf 10.5 hours at $10/hr, you will work only 7.3 hours. You have a saving of almost 3 hour in witch you can think how to complein about “the rich are not paying ther fair share”.
