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Click on my name and look at the previous posts on the FairTax subject on my home page. There is a lot there from both sides if you are really interested.

The basic problems with the FairTax are:

1. The assumption that wage earners can keep their paychecks and prices stay the same is ludicrous. If wage earners keep their paychecks, prices with FairTax will rise 20%+ on domestic items and 30% on imports.

2. The assumption that the government can get by on the same amount of revenue as collected now when they know that they will be paying 20%+ more for everything they purchase and on every salary and benefit *yes, the FairTax is levied on all government purchases including payroll*. So, they will need about 20% more money than they collect now.

3. The "prebate" is the largest entitlement program yet invented, and will be used undoubtedly to redistribute wealth.

4. The enforcement of the sales tax rebate structure on business will be more unworkable than the present system, OR it will be much more easy to evade-- your choice.

5. The imposition of a 30% (36% for govt purchasing power neutrality) sales tax will lead to black market activity, and stifle consumption, which will require the rate to be raised, causing more evasion and black market activity, causing the rate to be raised further.

6. The only way to avoid evasion is strong enforcement, and you need to check everyone closely because you don't know who are the cheaters, and this is one of the major things that FairTax people think they are getting rid of.

7. When the whole FairTax plan proves unworkable, they will re-institute the Income Tax as an emergency measure and we will have both.

There are other problems, but these are my primary concerns. And I have read the book.