The IRS processes 140 million individual returns now. The states, who will have primary responsibility for collection and auditing business, are already doing so in most states, so it's nothing new for them. How hard is it to process (sales X xx%)?
Under the FairTax, the IRS is gone. Under the FairTax, you can sell your car to anyone and no one cares because used goods are not taxable. No tax, no audit.
What you tout as a benefit is a huge detriment. Varying rates open up the system to what we have now -- political bickering, lobbying for favored status, vote selling and buying. The FairTax has no exceptions, no exemptions, no deductions.
Having one rate provides uniformity, fairness, and simplicity.
It seems that you are passionate about an excise tax. It's also probably a fairly good plan. Considering that the FairTax has been around and talked about for almost ten years and is gaining ground -- in the public and Congress; considering that there has been millions spend to study the effects, costs, and benefits of the FairTax; considering that 'our' plan has the support of House leadership; who do you know that can finance your plan until it reaches the level of acceptance than 'our' plan has? Who will champion it?
Do we really want to wait another 4 or 6 or 10 more years when this plan (which I think you'd agree is pretty darn good) could be passed in 2006 in the House? Bush will sign this plan. Will the next president sign your plan?
Finally, what rate would you have to charge to provide the revenue needed to run the leviathon? Will it cover the expenses needed to sustain the viability of the SS and M/C systems? How will it handle the regressivity that the demogogues will target as the reason to shoot your plan down? Do you exempt certain products or categories of products?
But you say that the different rates possible in the excise tax open it up to political gimmicry. Then you tell me that selling a used car is not covered in the NRST. Well if I buy a used car now I have to pay state sales tax on it, so the lack of it in the NRST is also a form of gimmicry .
What I am trying to do is take a good idea and refine it. I can certainly live with a NRST, if you can get it passed. My problem is in watching the political monkey-business, that the democrats have gotten so strident and so radical that I think they will literally do anything to keep this from passing. The fight with them on this will be a drain.
Finally you question on the final rate, I have another study I prepared where I discuss that the fixed cost in our domestically produced products from the income tax is high enough that when we start pulling that out, that it will offset most if not all of the price increase in either the NRST or excise tax replacement.
I just think the excise tax is a refinement of the NRST that improves some significant weaknesses. But either way I'm OK. What I can't live with is the current system that is burying my kids in a shitty system where decent jobs are becomming as rare as virgins in a whore house.