Quote:
Originally Posted by Benjamin
Okay then, I stand corrected.
But... how would fraud be avoided?
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You cant avoid all fraud, but the system wont change in how it works in regards to audits, only the state does it now. Business still have to report sales, and forward a portion of those sales to the state. THey are PAID for doing this under the Fair Tax. So is the state for collecting for the treasury. This means it takes two people to committ fraud, a business and a customer.
Fraud wont be eliminated, but research shows it will be less, and tax collections will rise, as we move from hard to enforce income taxes, to hard to avoid sales taxes. Even a drug dealer will eat at McDonalds, and I dount that they will work together to avoid sales tax. Same goes for most businesses.