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→Criticism
Finally, the FairTax shares a major flaw with the current income tax system: There is no cap on the rate that Congress may impose. Initially, that rate might be established at 23%. But nothing in the FairTax proposal prevents Congress from raising the rate to 30%, or even higher. Given the government's proclivity for spending money, an eventual increase in the FairTax rate, were the tax to become law, seems inevitable.<br />
Finally, the FairTax shares a major flaw with the current income tax system: There is no cap on the rate that Congress may impose. Initially, that rate might be established at 23%. But nothing in the FairTax proposal prevents Congress from raising the rate to 30%, or even higher. Given the government's proclivity for spending money, an eventual increase in the FairTax rate, were the tax to become law, seems inevitable.<br />
Another complaint is that a sales tax will not effect overseas purchases, or money from investments, encouraging hoarding.
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==External Links==