Changes

==Criticism==  

==Criticism==  

*Critics contend that the FairTax would have Constitutional issues. Supporters have painted the tax as an "[[excise]]", but opponents question this view believeing that an excise is a tax that is strictly limited to privileged or luxury goods and activities. They believe this view is confimed in other court rulings.<ref>http://www.conservapedia.com/Excise</ref> and the FairTax, including necessities, would therefore make it a [[Direct tax]], and not allowed under law.  In ''Brushaber v. Union Pacific Railroad Co.'' (1916), the Supreme Court ruled that whenever any "[[excise]]" morphs into a tax on items of common right (such as anything necessary to preserve and carry out a normal life) "the duty would arise to disregard form and consider substance alone, and hence subject the tax to the regulation as to apportionment which otherwise as an excise would not apply to it."

*Critics contend that the FairTax would have Constitutional issues.

*The FairTax would fail to close all loopholes. Purchases made overseas, although subject to the tax, would be difficult to track and therefore cheating might occur, much as it does now under the current system.

*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.

*A greater dependence on second-hand goods might occur, since they are exempt, and therefore alter the spending habits of the U.S. consumer.

*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 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.

*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.

*It is argued that the FairTax would benefit the wealthy at the expense of the middle class. "It's these precious few people who control so much of this country's wealth that this tax is intended to benefit the most, since they actual(ly) spend a very small part of their personal wealth."<ref>http://www.cogitamusblog.com/2008/01/national-sales.html</ref>

*It is argued that the FairTax would benefit the wealthy at the expense of the middle class.

==External Links==

==External Links==