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mLine 57:
Line 57: − + − + + + − − *It is likely that the FairTax would benefit the high income earners at the expense of the middle and working classes.
→Criticism: - rephrasing and reordering
*Critics contend that the FairTax would have Constitutional issues.
*Critics contend that the FairTax would have Constitutional issues.
*The FairTax would still have tax evasion. Purchases made overseas, although subject to the tax and collected by the U.S. Customs and Border Protection, would be difficult to track and therefore cheating might occur, much as it does now under the current system.
*The FairTax would benefit the rich most, because they tend to spend a lower proportion of their income. The name 'Fairtax' therefore seems to be a [[misnomer]].
*A greater dependence on second-hand goods might occur, since they are exempt, and therefore alter the spending habits of the U.S. consumer.
*There would still be [[tax evasion]] with the FairTax. Purchases made overseas, although subject to the tax and collected by the U.S. Customs and Border Protection, would be difficult to track and therefore evasion could occur, as much as or more than it does now under the current system.
*A greater dependence on second-hand goods would very likely occur, since they would be exempt from this tax, and therefore alter the spending habits of the U.S. consumer and damage industry.
*There is no cap on the rate that might be imposed by Congress. Just as current income tax rates change, the initial rate of 23% may be changed over time as Congress desires. However, since there is one rate, it would be difficult to engage in [[class warfare]] and pit one economic group against another — Congress would raise or lower the rate on everyone. Every citizen has an interest in keeping the rate low.
*There is no cap on the rate that might be imposed by Congress. Just as current income tax rates change, the initial rate of 23% may be changed over time as Congress desires. However, since there is one rate, it would be difficult to engage in [[class warfare]] and pit one economic group against another — Congress would raise or lower the rate on everyone. Every citizen has an interest in keeping the rate low.
*Many claim that due to the nature of politics, while the FairTax might be enacted, all or part of the existing income tax might be preserved, resulting in the federal government having two means of taxation. The proposed FairTax legislation has a [[sunset clause]] that would eliminate the tax in seven years if the 16th Amendment is not fully repealed. However, there is no guarantee that the sunset clause would not be removed from the legislation prior to passing or later repealed by Congress.
*Many claim that due to the nature of politics, while the FairTax might be enacted, all or part of the existing income tax might be preserved, resulting in the federal government having two means of taxation. The proposed FairTax legislation has a [[sunset clause]] that would eliminate the tax in seven years if the 16th Amendment is not fully repealed. However, there is no guarantee that the sunset clause would not be removed from the legislation prior to passing or later repealed by Congress.