OldIRS vs NewIRS.
-Either way the size the the government employee based remains the same.
-Either way the size of the government remains the same.
HR 25 does not change the constitution, it only changes law. The so called simplicity of HR 25 is a falicy as you now have to register as a vendor, you have to register as a government approved family (just wait for the new-socialist-family engineers to grab a hold of what is a family) You have to PROVE your exemption which is just more paperwork in tracking all the exemptions.
Of course this assumes your industry has not simply moved, like the 1991 luxury tax caused, outside of the USA.
We need a system of reducing the size of governemnt and reducing taxation.
The FairTaxScam is simply premised on the absurd notion that we are taxed enough but just by the wrong means.
We need som OTHER proposal to get rid of the current tax system. Then again for all we know this proposal could be just another clintonesque self donation tax trust write off.
As an example, you will not find me defending the current size of government. I think the FairTax would do some things very well, and some things not at all. The intent of those who proposed the FairTax is to save the government spending battle for later. The transparency of the FairTax would be helpful in attacking spending. And since everyone would be paying the same highly visible tax, it becomes harder to sell the idea that everything can be financed by taxing the other guy--the "rich", the corporations, the evil oil companies, etc.
I think your example of the luxury tax killing some industries in the US in 1991 would not hold true under the FairTax. The luxury tax was laid on top of the existing tax load and put domestic countries at a competitive disadvantage. The FairTax would put domestic countries at a competitive advantage by removing their taxes and thus lowering their cost of production. Foreign products with embedded taxes in their wholesale price would be at a disadvantage in our domestic market. Many FairTax proponents suggest the business reaction would for companies move to the USA from where the taxes are higher.
No, I don't believe bureaucracy would disappear entirely with the FairTax. I do believe requirements on both business enterprises and the private citizen would be much less. Those collecting the FairTax would be paid to do it, instead of the current practice absorbing the cost of collecting the state sales tax or withholding tax. The compliance costs of administering withholding, keeping track of all income and deductions and arranging affairs to minimize the tax load would go down in a major way.
I believe the income tax is thoroughly embedded in our culture. We all have accumulated a lot of knowledge of how our own situation is effected by the income tax law. The FairTax would make most of that obsolete, something that I believe scares people--especially those people whose living is based on dealing with the income tax and its effects.
The FairTax would have to be pretty terrible to be worse than the yearly experience I have trying to pay no more income taxes than are legally required. With FairTax, the tax is paid with the transaction and it is OVER. I don't have to track much of anything or tell the government much about my personal affairs. April 15 would be just another day. Hallelujah!!