(09-30-2020, 08:26 AM)mikesez Wrote:

(09-29-2020, 09:46 PM)flsprtsgod Wrote: The Fair Tax proposal is designed to "prebate" the tax on poverty level spending with a monthly check for all households. That way the lowest income households pay no tax on most or all of their monthly expenditures.

We would still be filling out long forms with all sorts of details about how much money we make, how we make it, and how our household is structured, so the government could determine how much "prebate" we get. Frankly I don't see the advantage.
While Bush was president, he commissioned a study of this issue. He found that if the prebate was small, the tax burden shifted very heavily to the poorest people. As they made the pre-bate bigger, the burden shifted away from the poorest people and towards the middle class. Either way, the tax burden on the rich was much less. 
Which is similar to how it would be with a flatter income tax

No we wouldn't, the prebate is the same for every household. Every household gets the prebate in the amount of e.g. $1,000 that represents the 20% tax on the first $5,000 the household spends each month. That poverty level spending threshold is determined by the COL based on geography sort of like how Medicare adjusts payments to physicians based on where they practice. Every dollar earned comes home, every dollar spent over the threshold gets taxed as sales tax.

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