That's interesting! Though after reading so many pros & cons of FairTax on wiki, I'm still not convinced it's a good idea. The potential downsides are pretty dramatic:
* Discouraging of consumption (encouraging saving, DIY & black markets)
* Income-regressive nature of consumption
That said, some of the upsides are pretty good too. And if we were switching from FairTax to the current system, the latter would seem even more insane.
Yeah, I'm not on board with all the FairTax tenants. For one, the sales tax should be progressive based on product type (range from basic necessities to luxury).
Savings and DYI are a good thing long term. Maybe not so much for the inflationary consumer based system that the banks and megacorporations benefit from.
The pre-bate, which is similar to a basic income should help offset the regressive nature. In fact, I think it could replace most welfare programs.
* Easier tax evasion (first-party reporting, B2B untaxed)
* Discouraging of consumption (encouraging saving, DIY & black markets)
* Income-regressive nature of consumption
That said, some of the upsides are pretty good too. And if we were switching from FairTax to the current system, the latter would seem even more insane.