The whole idea that everyone should get a check from the government is stupid
The idea of replacing the income tax with something else that is also graduated and gives money to those who paid nothing while others still pay more.
In other words its not a tax cut, it is "revenue neutral" and the only real difference is that check from the government for everybody. The minute you start sending them checks from the government, you got them voting Democrat forever. It will be turned into the largest welfare schemes in world history. Democrats will run for office promising bigger prebate checks, especially for the poor and middle class.
Under the FairTax, all Americans consume what they see as their necessities of life free of tax. While permitting no exemptions, the FairTax (HR25/S122) provides a monthly universal prebate to ensure that each family unit can consume tax free at or beyond the poverty level, with the overall effect of making the FairTax progressive in application.
There is no marriage penalty as the couple gets twice the amount that a single adult receives. While
everyone pays the same tax rate at the cash register, the prebate results in effective tax rates (annual taxes paid divided by annual spending) that increase as the level of spending increases a progressive tax rate structure. For example, a person spending at the poverty level has a 0% effective tax rate, whereas someone spending at twice the poverty level has an effective tax rate of 11.5%, and so on. -
The FairTax is replacement, not reform. It replaces ALL federal income taxes (personal, estate, gift, capital gains, alternative minimum and corporate), Social Security, Medicare, self-employment taxes.
Everyone pays something at the cash register every time they make a purchase and get a detailed receipt showing the exact amount of tax paid! EVERYONE becomes acutely aware of exactly what all this government is costing them.
Meanwhile business can build or expand their business without having to give even one second's worth of consideration to the tax implications of doing so and the economy booms like no one alive in America today has ever seen!
