Next, one of the main reasons for an income tax over something variable, such as a sales tax, is that it is somewhat forecastable and allows for budgets to be made. How do you expect our Treasury to react to an unpredictable revenue that is not definable except by yearly sales? Not going to work.
First off there have been studies to show that the FairTax would allow the revenue to stay the same, if not grow. And guess what? People have to buy things; People want to buy things. It's human nature to indulge ourselves.
Last the main reason that whole idea is just basically retarded is due to the aspect of our economy. You raise sales tax that much, you end up stifling spending. Our economy is built around this. The domino effect would cause that whole idea to turn around, bite us in the ass, and put the US into a depression. Also the fact that you mentioned so called proration and that we would eliminate tax on items that are essential is ludicrous too. Under the "Fair Tax", this is only going to come from luxury items? Irony. How FAIR is that?
Are you ready for this? You're wrong! Flat out wrong. Under our current system there is a 22% embedded tax on typical consumer products. If the FairTax plan were to pass, that embedded tax would be removed (along with payroll taxes, SS taxes, Medicare, so and and so forth) and be replaced with a 23% sales tax. Something that costs $100 now would cost something like $101 afterwards, BUT you are getting, on average, a 25-30% larger paycheck. Seems to work out pretty well doesn't it? You liberals just can't seem to use logic can you?
About the prebates. There is a formula in the FairTax Bill that sets out how much money the government thinks you should be spending over the course of a year (depending on your marital status, children, income) on necessities (food, clothes, etc.) and determines how much of that amount is the 23% sales tax and pays you that amount back over the course of 12 months. This prevents the rich from getting money back because they "need" a $300,000 car. So in reality, the rich are paying more than the poor anyway you slice it... which I'm sure you love.
Next argument please.
