[joethiesmanfan]

Originally Posted by Slingin Sammy 33

No tax forms. Tax is taken by merchants as basically a national sales tax on all items purchased. The poor receive a monthly or yearly rebate check to cover the tax on basic necessities. IRS is greatly reduced because they only need to enforce on merchants. And no, this isn't a VAT, this is the only federal tax you would pay. All other income, SS, Medicare taxes are removed and you keep your pay execpt for what states levy. If the FairTax is implemented states will likely follow and eliminate income taxes and move to the same model. Also no corporate taxes, making the business climate much more competitive against other countries.

With no corporate taxes, (estimated pass-thru to consumers is approximately 22%) and a FairTax rate of 23 % to fully fund the Fed, an item that used to cost $ 1.00 would now cost $ 1.01.....and you would have no federal deductions from your check. The wealthy will still pay a larger portion of the Fed tax burden as they buy more expensive items.

This system taxes those who don't claim or file Fed taxes, (drug dealers, hookers, illegals, etc.) because it collects the tax when items are purchased.

Okay sounds good, those are the positives, what are the negatives?