The FairTax, Join in!

[Eomund]

@Avinash
America's basis for the economy is Capitalist. If it isn't Capitalist, whose fault is that? THE RULING CLASS! THE POLITICIANS!

@Superchunk
The States could switch to a similar system. Right now the majority of the states model their tax system on the federal system. It wouldn't be hard for each state to switch to a smaller version of the FairTax. Most states already have some form of sales tax.

The States would collect the taxes from the companies and then send it to the Federal Government. The companies that collect the FairTax at the Retail level get a small handling bonus for the taxes they collect, something like $200 or 0.5% whichever is greater. The States also get a small handling bonus for collecting the FairTax from the companies.

I am not sure how the local level would handle the tax, but since they very rarely have an income tax to begin with, I do not think this is a problem. They could simply embed the sales tax in the price of the goods as well.

The FairTax is Federal Tax reform, not local or state tax reform. However I understand that reformation at the Federal level impacts the lower levels as well.