Quote:
Originally Posted by Ignignokt
I seriously doubt it would change behavior that much. The real effect would be that if there are any situations where the tax is not charged, people would come up with all kinds of loopholes to avoid paying the tax.
Seriously...let's say Ford sells a car. Who in the supply chain does and doesn't pay a tax? Does the company who makes the bolts used to weld metal together pay tax? How about the people who make windshields? Or the company that makes seat belt buckles? Do they all pay tax and then the consumer also has to pay on the final product? What about if a Ford employee drives it around for 500 miles? Is it then "used?"
There are just so many loopholes and edge cases that this thing will cause. It will replace today's accountants with people who are experts on when "Fair" Tax is and isn't owed. It's just trading one evil for another, AND it's a regressive tax to boot.
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False, the FairTax is a progressive tax. Go back to the post that has a link to the "FairTax Five" and read about it. Or just go to Fairtax.org