How can the Fairtax change our country?

Question

www.fairtax.org

And how about that prebate?

Answer 1

for the better

Answer 2

Many of their assumptions do not appear feasible. For example, the IRS would still have to be around to collect all the remittances from those collecting the sales tax. They would also have to deal with the prebates of taxes on the income below the poverty level.

They say its progressive and rev. neutral but I doubt that. Those in the middle class would natually spend more as a percentage of income for most things than those in upper income brackets.

It would however spur savings and investments since no cap gains or taxes on interest. But, when the economy goes sour and spending tanks, then so does revenue.

Also, some thing would be significantly more expensive if they taxed them as a national sales tax-- cars, houses.

What about taxing food or medicine-- they'd have to exempt those realistically.