[ QUOTE ]
I don't understand why poker players haven't been supporting the national sales tax also known as the
Fair Tax
[/ QUOTE ]
The "Fair" tax would be a disaster.
Money is only made when money is spent. There are no exceptions.
The current system taxes most money at the end of the year (or quarter), when the
net profit can be determined. No profit means no tax. This has the added benefit of creating an extra incentive for the government to help businesses succeed -- failing businesses generate no taxes.
The "fair" tax is profoundly unfair. When measured as a percentage of income, the "fair" tax results in the poorest people paying the highest percentage while the wealthiest pay the least. Businesses are taxed the same regardless of whether they are profitable or show a loss. Businesses that are profitable today, but only by a small margin, become unviable under the "fair" tax. The "fair" tax also removes money from the hands of spenders more quickly... meaning at any given time, the spenders have less spending money available.
The "fair" tax creates a strong incentive for people to hoard and save money instead of spending it. Remember that a dollar can only be made when someone else spends a dollar. Fewer dollars spent means fewer dollars to be earned by you and me.
In the context of poker the buy-in (or cash-out) would likely be considered spending, and incur the tax. It would be extremely naive to think that greedy politicians are going to leave poker money untaxed. Even proponents of a sales/use tax admit that one of the big dangers is that we wind up with a sales tax PLUS the current income tax.