@H2O MAN,
Agreed. I have heard Boortz talk about this. To expand on it, it would make all manufacturers, regardless of location, play by the same rules in regard to how their products and services are taxed in this country. It might cause one of the biggest economic booms ever, because we could once again make thousands of our own consumer goods here that are currently made offshore and avoid the same kinds of taxes. The Fair tax also taxes everyone avoiding income tax, such as illegals, drug dealers, and other scammers.
And although the tax rate could seem high, everyone has much more money in their pocket before they buy, plus the products will come to the shelf at a much lower price, so the consumer can stand to come out just as good or maybe better than under the same cumbersome system. Part of the good news is to get rid of the IRS as we know it. Every year at this time, I am always amazed at how stupid and convoluted the tax returns are. Wouldn't it be nice to get rid of it?
Part of the beauty is the infrastructure is already in place, as almost everywhere in this country the states and local collect sales tax to support their local governments, so it is a simple matter with barcoding and collection. Instead of riding herd on hundreds of millions of people, we need to watch fewer retailers, and the vast majority of business is done by just a few of them. And the local taxing authorities are already watching things and would help, because they also have a big stake in collecting sales tax.
