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HavBlue
This is nothing new and the idea surrounding it has actually been around for a while. A fair tax system would place the burden of payment at the point of sale for all goods and services while removing the burden of a traditional income tax. In some respects the roughly 30% charged at the point of sale would seem to help however, some would argue a consumption tax "fair tax" would breed fraud and evasion. It is also thought the fair tax would allow businesses to move more capitol into production with a positive effect on future investment. However, it is also argued the upper class would benefit the most while placing a larger burden on the middle class. Additionally, the fair tax would do little to help the poverty level people unless they were once again supported by some form of credit offset. If you are interested in following this Google House Resolution 25, which was sponsored by John Linder (R-GA). The bill is currently dead.
Keep in mind, this is only federal tax and there would no longer be any deductions. It does not take into account the taxes associated with any state program either. This meaning the ultimate outcome of the tax you pay will be far greater than the proposed 30%. Additionally, not only would the IRS be necessary in an effort to collect from those found to be evading tax, what will we do with those in an industry known as tax preparers, attorney's, certified public accountants and so on? There's a multi billion dollar industry right there. At present, the US Tax code has roughly 5,000 pages and this is only the general code as there are an additional roughly 3,000 pages in the IRM.
