[Bob Moss]

[ QUOTE ]
Even if the poor paid the entire 23 percent FairTax, they would be better off than now, but they don't. The FairTax provides a rebate of all tax paid on spending up to the federal poverty line to everybody. This cancels out all taxes for those living at or below the poverty line, $25,660 a year for a married couple and two children.


For the same family earning twice the poverty line ($51,320), half their taxes are rebated, yielding an effective rate of 11.5 percent. And even at triple the poverty level, $76,980, their effective rate is only 15.3 percent, still far better than the 28.4 percent the poorest of the poor pay now.

[/ QUOTE ]

I thought this system was supposed to be simple. This is already far more complicated than it should be, and it certainly will not be getting simpler over time.

Some percent of the tax will be refunded each year. So, that means we have to save ALL of our receipts for everything we buy, or get screwed? And the gubmint holds onto that money in the meantime, robbing me of interest or investment returns. The refunds are based on income, so... they will still be keeping track of our income? You can't get rid of the IRS if you want to do that.

This is all on top of the plainly obvious fact that income taxes are never going away, so all this does is provide another easy way for the feds to rob you.

The only upside to this plan I see is if you could just pay your tax, throw away your receipts, and be much more free from government meddling. But I highly doubt they'll make it that easy.