Final-Fan said:
Eomund said:
Kasz216 said:
Except for the prebate commission which would take nearly as much if not more man power as they IRS. To run the registration centers in every town, heck a few in every town since the poor can't find good travel to get to places. I've known people who couldn't get welfare because they couldn't get a ride there. Oh, and the agents needed to audit the prebate numbers, to make sure that nobody is frauding the system, oh and the agents needed to audit every buisness in the US to make sure they arn't selling goods as for other sales instead of final goods. I'm not seeing where the cutbacks in the IRS would be made. |
See this is where the government should outsource this prebate responsibility. Private business wants to make money and so they will be the most efficient dollar for dollar. (this is not always the case, so don't bring it up. it is a general truth however.) All they would need to do is check the validity of a Social Secuirty number and send money to an account that is loosely based on the number of valid Social Security Numbers. The government takes a census through the mail correct? And if they need to verify information they will either show up at your door or call you. They could include the FairTax registration with the next Census of 2010. If Private Business is responsible for the running of this "Prebate Commission", as you call it, they would just need to create a few routines before they accept a new applicant. 1) Check for Citizenship status. 2) Check for unusual behavoir patterns, eg. a family is having a baby every 3 months. Each business sends the collected FairTax to the state they are in. The States would be responsible for the oversight of each business as they are now. If a business claims that they took in $100,000 for that month, then they would be required to send in $23,000 to the State for the FairTax. The States then pass the FairTax onto the Treasury Department. Since the FairTax is transparent and simple, the evasion of the FairTax will be down from the current evasion level. Now there will always be tax evaders. But since it is easier to collect and process the FairTax, the agents that track and prosecute the tax evaders will have a much easier job. They will only have to focus on a lot fewer people that they would have to pay attention to. "Yet it remains the case that 80% of the sales tax collections will come from about 20% of businesses -- including the national and regional retailers -- and I doubt that Wal-Mart or Home Depot or your local hospital is going to risk jail time to help you." from the FairTax Book. |
At what point in the process of giving money away is the profit made? Will the government reward them for giving less money away? If so, won't that encourage them to squeeze taxpayers?
On another note, if the entire tax collection system is concentrated on one point -- the point of sale of new items -- then there will be enormous incentive to evade that one point. |
Basically what i was going to say. Thats why europe went with a VAT. The tax is more evenly distributed along the supply chain so there is no benefit to fraud it. The Fair Tax system would be extremely easy to fraud. Who is going to go to jail at Wal-Mart if they do get caught frauding, the corporation heads or the managers who are ordered to do it by the corporation heads? What is the likelyhood of them seeing jail time? (Since CEO's hardly get charged with anythign they pull as it is.)
Who's to say they would do it for the consumers benefit exclusivly, who's to say a portion of these sales won't be used to line their own pockets. In Wal-marts case, allowing them to give slightly power prices while gaining greater profits.
Or just in general saying items were sold for less then they really were, so they can keep a larger percentage of the profits. Considering how objects drop in price over the time, i could see items being sold, and yet kept as "phantom stock" until a pricedrop allowing them to keep extra tax money. Of course this is only beneficial for those huge corporations.
Also private buisness that wants to make profits handling something for the good of the people does not work. That's how you get flop houses for mental patients and the like.
