Justin Scott <[email protected]> wrote:
>
>> So how the hell would anything about the tax be fair?
>
> Everyone pays the same level of sales tax (at the national level)
> regardless of their income level, and everyone gets the same refund
> check back every month, regardless of their income level.  Everyone is
> treated equally, hence it is "fair" from that standpoint.
>
>> To Justin's point, yeah state sales taxes work because
>> they're in combination with way massive income tax.
>
> How so?  The Florida sales tax is in no way connected to the federal
> income tax.  One is not linked to the other in any way.
>

Of course they're linked: it's the total tax burden paid by citizens
and visitors to the state.  If you institutionalized a "Fair" Tax
Florida's economy would become tops for black market goods.  You'd
need legions of federal IRS agents to patrol the Everglades.

If, all of a sudden, you got 35% of your income back and realized that
if you spent 25% of that on travel to buy black market goods you'd
still be 10% ahead!

That's a lot of trips.

And now auditing becomes a task of providing receipts for the goods
the IRS *can prove* you have.  Which is exactly why everything you
have is borrowed from friends and neighbors and you have storage unit
in a fictitious name that you pay cash for.

Assuming you totally ignore the costs in the change over (which would
be substantial), and assuming you exclude any new enforcement costs
(which would likely be substantial), I would predict the probability
of this working at 1%.

In fact I bet there'd be whole states like South Dakota, Wyoming, New
Hampshire, and others that would make a whole economy helping people
evade federal sales tax.

Wyoming has 400,000 people and told Lizzie Dole to shove her freeway
credits (in exchange for 55 mph) up her arse.  I bet they'd have no
problem challenging the state's rights legality of th

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