In article , "CB"
writes:


The trouble with all these great ideas is that the cost of administering the
taxes can out weight the tax benefit. In theory your idea sounds great, but
the beauracracy involved would be immense.



??

What bureaucracy? Other than those which already exist?

The tax will be collected by the States using their existing sales tax
bureaucracy, and the States will receive a commission to cover their small
costs for doing so.

The rebates will be sent out by the existing Social Security mechanisms, at the
cost of a bit more paper.

In return, the IRS will cease to exist. The day the FairTax goes into effect,
they turn off the lights at the IRS, and all of their records, other than those
needed for collection actions in progress, will be destroyed. That will save us
the $100Billion it costs us each year to operate the IRS, PLUS the $400 Billion
spent by businesses and individuals to comply with the IRS code.

The FairTax will reduce the total state and federal tax bureacracy by by at
least 90% over all, and the cost of collection will be built into the
collection mechanism.

Your personal tax compliance effort will be to send in a form once a year
telling the SS folks how many people are in your family and what their SS
numbers are.

Retail businesses will collect the tax as they do with sales taxes now and turn
them into the state, just as they do now. They will no longer have to withold
taxes from employees, calculate depreciation, or any of the other accounting
that is otherwise not needed in operating the business. Their monthly tax
return will look something like

Retail Sales X Tax Rate = Amount enclosed.

That's it.

--
Wm. Donald (Don) Tabor Jr., DDS
PP-ASEL
Chesapeake, VA - CPK, PVG