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That is something worthy of looking into. I think I know why there is a Prebate though. The Prebate un-taxes the poor. Since it is not fair to only give this to one group of people, you have to give it to everyone. To not include a rebate/refund of excess taxes to any group (but one) is suicide for any tax policy. The Prebate makes the FairTax equitable and even handed since everyone gets it back every month. The government doesn't use charities to perform any function of the tax system. That is why people can't rely on the charity of others and get rid of the Prebate.

Think of the Prebate as an advanced refund for the taxes on the goods and services required to live.

That is all the Prebate does, un-tax the essentials of life. If we were to exclude all life essentials from the FairTax at the outset, the rate would be very high indeed and would not be fair or even handed. The Prebate removes the need to raise the rate on everything other than life essentials.



I want my WHOLE paycheck! I support the Fair Tax!

http://www.fairtax.org/