Flat income tax does not capture tax revenues from those who do not report income or produces. Not everyone produces, yet everyone consumes. Fair Tax is a consumption tax, capturing EVERYONE into the tax code.
Sadly enough THAT is a rate that would generate a celebration of achievement in reduction!
Only if it weren't allowed to be augmented by surcharges to take up the slack via other labels such as "surcharges" and "users fee's".
With a low flat tax, the incentive for a black market decreases. Everyone will want to produce and pay their taxes. There wouldn't be any of this avoidance.
Not everyone produces, yet everyone consumes. Fair Tax is a consumption tax, capturing EVERYONE into the tax code.
And it gives EVERYONE a bogus "prebate", including those who won't find work. Pretty soon you're going to have a bunch of people refusing to work and living off of their prebates, and tax revenues will decline.
It is also the only code that does not penalize you for saving. If you don’t spend it, you don’t pay tax on it, therefore you have a much greater incentive to save your money.
However, it will reduce the burden greatly on the upper income ranks, so there will be more money to spend, so I don’t think it will hurt the retail markets at all, will likely help them.
How's that? Drug dealers, pimps, etc. will collect the FairTax on all their transactions and hand it over to the government?