[econjack]

I'd like the Fair Tax better if it didn't have the Prebate element in it. That gives the politicians a way to get their hand in the pot...again. I'd prefer a flat tax, absolutely no deductions and no transfer payments tied to the tax code. Friedman estimated that a 17% flat tax would generate more income than the current tax code. I think he's right. Also, a flat tax form could be done on a post card and the entire tax code could fit on a single sheet of paper and anyone who wanted to could read the entire tax code in a few minutes. Try that with the current code.

[sunrise_sunset]

You dont think small businesses should have deductions for expenses ? Why even start a business then.

[MrB]

I think we’ve kinda discussed this, you and I, before -
but what is your objection to the prebate?

My understanding is that everyone gets it, regardless of income, etc.

It basically exempts the first X amount of expenditures from the fair tax. It would be best if it was “floored”, even though the currently proposed plan has no such thing.

[Paul R.]

a flat tax form could be done on a post card and the entire tax code could fit on a single sheet of paper and anyone who wanted to could read the entire tax code in a few minutes.

Unfortunately, you are neglecting "determination of income". For those with a simple weekly paycheck, pension, etc., and not much other income, or deductible expenses, DOI can be simple. For even a very small business, and in many other situations, it can be a nightmare. DOI is a VERY big part of the tax code.