The prebate is necessary so nobody, not even Bill Gates, has to pay taxes on the basics of life. Call it a tax free cost zone. In some states no sales taxes are paid on medicine and food. Can you guess why?
I understand that's how the prebate is being sold, yes. And it sounds so ... noble.
But why are we suddenly developing this philosophy? Everyone from Bill Gates to the beggar on the street pays 23% in hidden taxes on everything they buy today. (To remind you, that's the 23% that we're going to remove and make visible with the Fair Tax. Some on this forum think hidden taxes and tax costs are as high as 32%.)
Seriously. Why is there no call for a prebate today under the existing income tax system?