Prebate is a stupid idea and, if we're fair with ourselves, so is the fair-tax: it involves the FedGov in all sales. (Sure we could manage things easily, maybe a smart-chip in the hand or head…)
I'd actually rather an income tax, and a flat-rate, with no exemptions no write-offs, no credits, no rebates, and no withholding.
Correct me if I an wrong, but is that not how our current income tax started?? Way back when the income tax was 1% on only the high income earners. Why should the Government know about out income?
We can now collect sales tax on “New” items without any problems. Point of sale can forward the $$ to the Treasury same as they do now at the state level. No forms required, it may not be perfect but it is a lot better than what we have now.