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The IRS would shift its focus from auditing individuals to auditing states. They will still be there, they just won't be terrorizing our citizens; They will be terrorizing other bureaucrats. Win, win!
The prebate reimburses the FairTax up to the poverty line. You would still pay sales tax on food, but this is the way they rebate that tax up to the federal poverty level.
The FairTax does not seek to eliminate the IRS, only to shift its focus from individuals to states, to audit their tax-collecting systems
Nice try with the $30 red herring. The author is either ignorant of the subject or is deliberately lying. The FairTax is calculated exactly as the income tax, which is called an "inclusive" tax. Sales taxes, by contrast, are "exclusive." A $23 tax on a $77 purchase, calculated exclusively, as sales taxes are, would be a ~30% tax. When calculated as income taxes are, the tax is 23% ($23 of a $100 total purchase is 23%) By the same logic, a 10% inclusive income tax on a $10,000 income would be $1,000. If calculated exclusively, it would be $909. ($9,091 income plus $909 tax = $10,000) (figures rounded to nearest dollar, which is what tax forms require.)
Nothing in the FairTax requires anyone to register with the federal government. Registration would only be required if you wish to receive the prebate. If you do not wish to register with the IRS, you don't have to register, but you forfeit your prebate.
I am reminded of an old quote. Maybe it's time to hang one senator to encourage the others.
No more delays. Let it collapse under its own weight and let the voters suffer under the burden they've brought on themselves!
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