[swatbuznik]

I think it’s great, but the prebate really worries me. I can easily see the Dems increasing this prebate up and up and up.... ‘fer der poor’

[Man50D]

I think it’s great, but the prebate really worries me. I can easily see the Dems increasing this prebate up and up and up.... ‘fer der poor’

The Dems would have to increase spending to fund any increase in the prebate. That, in turn would require increasing the NRST rate. Doing so would be very difficult since the The Fair Tax is transparent with the rate printed on the receipt. More importantly if Congress increases the rate too high, people will respond by decreasing their purchases. Tax collection would be reduced and Congress would have less money to spend. In order for Congress to maximize its collection of the NRST they must keep the rate within reasonable bounds.

[MrB]

Actually, that’s something that’s kinda cool about it -

they CAN’T “target” it (ie, class warfare).

EVERYONE gets the same amount, simply based on number of dependents.

So, if they raise it fer de puuur, “the Rich” get it too, and I don’t think they could stomach that.