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Eomund said:
The Prebate only is refunded for the essential goods needed to survive, hence why it is based on the poverty level. Therefore the Prebate is not a welfare program, but a tax refund on the essentials of living. If we were to not apply the FairTax on those essential goods already, the rate on goods the FairTax would apply to would be very high.

This seems improbable, given that the government wouldn't have to pay the prebate checks, or the cost of running the agency that tracks and prints them.