[Man50D]

Why is the prebate necessary? I mean, if the poor have the same amount of untaxed disposable income (or government handouts) and if prices remain the same with the Fair Tax added, why the 500 bucks every month?

You are neglecting a very essential point. The prebate is not a handout. It is not intended to pay bills (i.e. rent, food, shelter, clothing). No family could subsist on only the prebate. It is a refund only of taxes paid on those necessities up to the poverty level. It is somewhat similar to a tax refund under the income tax.

The poor are paying these hidden taxes today and nobody's crying for them today saying that these hidden taxes are "falling most heavily on the poor who spend a greater share of income".

Too few people are saying it today for anybody, regardless of economic class, because most people don't realize they exist! As the old adage goes, out of sight out of mind.

[robertpaulsen]

"It is somewhat similar to a tax refund under the income tax."

Do you mean the Earned Income Tax Credit?

"The prebate is not a handout."

I understand. When I said handout I was referring to welfare, food stamps, WIC, medicaid, and other goodies. I was saying that those currently on government handouts would also get the prebate, even though those handouts are paying the Fair Tax, not the individual receiving the prebate.

"because most people don't realize they exist!"

Look. All you have to do is tell the poor that prices will remain the same under the Fair Tax. That's true, isn't it? Their income (whatever source it is from) remains the same. Ergo, they don't need any prebate. What's so hard about that?