[lucysmom]

The flat tax tries to simplify that concept by making every business fit in the same hole. Deductions are complex by their nature, because business innovates in ways to produce revenues.

On the otherhand, the NRST tries to fit every individual into the same hole.

[n-tres-ted]

Actually, the Fair Tax does not try to fit every individual into the same hole. Yes, the Fair Tax provides the same amount of monthly prebate to every household of the same size. But that amount of prebate has very different effects on the household's effective tax rate, depending upon the total amount of spending for consumption. If monthly consumption spending for the household is $1 million, the prebate will have an almost negligible effect on the effective tax rate. On the other hand, for a household with total spending at the poverty level, the prebate makes the effective tax rate zero. For those below the poverty line, the prebate gives them positive spendable income. For those above the poverty line, their effective tax rate will be lower than their present tax rate. Why can all current taxpayers be sure their taxes under the Fair Tax will be lower than presently? Because the Fair Tax will require those who pay no taxes presently ($345 billion annually in the Tax Gap, and 2 to 3 times that amount in the underground economy) to pay their fair share at the cash register. Even those in the underground economy would be better off under the Fair Tax, because their tax payments would not be overly burdensome and they could live without the threat of going to federal prison.