Equality?

[steelish]

Fair Tax is a system that is even easier to defraud than the current IRS. How many contractors do you think are going to under report or fail to report work under this system? If they do now they risk having their client claim any deductible work on their taxes and if the IRS tracks it they can show the unclaimed income. The IRS isn't great at it, but it does provide some disincentive. FairTax actually encourages people to be dishonest because from the perspective of the above board guy whose prices are 30% higher, how many sales do you think you get against the guy who cuts corners and claims a much lower bid, adds on the 30% sales tax and doesn't report it.

The free market has a lot to do with who succeeds and who doesn't. Regardless of prices, offer a substandard product and word gets around. Also, America currently has a 38% Corporate tax - the highest in the world. Doing away with the corporate tax and adding a higher tax at the point of purchase would result in corporations lowering product costs. If they can't sell their product, they can't make money...supply and demand.

Also the switch from a largely income tax based approach to a largely sales tax based approach is double taxation on anyone who has already taxed income in investments, this can be a huge issue for retired individuals and will probably result in increased social security expenditures as more individuals become vulnerable in retirement.

We're already double-taxed. We have our income tax and we have our sales tax (which differs state to state).