They would still need to audit individuals to make sure they've paid the sales tax on things that they buy.
You don't audit individuals for that. You audit the businesses to make sure they collected and paid the sales tax to the appropriate agency.
As for the sales tax vs importation duties, well, informal wording. You can apply the sales tax to imported goods, though it would be fairly complicated. Countries with VAT tax systems do it regularly.
Implying that the IRS would become a friend of man because their job would be different is just loony. They'll still be a large, powerful tool available to the ruling party.
1. Never said 'friend'. Mostly just less concerned about the individual.
2. The ruling party argument is indeed one of the reasons why people say it'd never pass.
3. Why are we still arguing about this? I'll repeat: Income to Sales tax was only given as an extreme example of how, in the face of changing tax law, the IRS would end up becoming a vastly different agency even if you didn't change anything else. I wasn't arguing for a sales tax system being implemented at all. Did the fairtax.org people kick your dog or something?
What truth? D'oh. Do they really qualify as "poor enough" to get the sales tax rebate? Does that person who answered "yes" really even exist, or did they die two years ago? Why assets and income? To know if they are poor enough to qualify. You're making $200k a year and own a mansion and a yacht, what makes you think you'll qualify for the rebate?
1. 'Poor enough' doesn't matter, seeing as how in the schemes I've read about Bill Gates is poor enough to get it. So you're arguing against your own little customized scheme. Certainly not 'fairtax', which is the proposal I remember reading.
2. 'Really even exist/Not Dead/Etc...' - Doesn't require digging into a person's financials, just that you have a pulse.
Most of the time current tax rebates and credits are dependent upon income.
As a volunteer tax preparer, I'd say only about half of them are, other than the whole 'have to have enough income to actually have enough tax to refund'.
it will be hard to hide the fact that the 1% is benefiting from the free money intended to help the poor people.
...Interesting viewpoint you have. BTW, you gotta stop arguing against part of a proposal that YOU put in there, especially when you don't explain it first. I was kinda going 'WTF' on the eligibility tests for the rebate, because they're not IN mainline proposals. They're in YOURS, which kind of turns it into a strawman, you know? Arguing that the politicians wouldn't allow a fairtax without putting a income test on the prebate is kind of missing the point, given that the fairtax people are already tilting at windmills(IE their proposal doesn't have a chance period).
The idea behind the prebate is that it becomes sort of a BIG - 'Basic Guaranteed Income' - EVERYBODY gets it, because this cuts down on paperwork. You propose your income check to the fairtax guys, they're going to reject it, because it's a core part of their proposal. It's what makes the sales tax actually be progressive. Then Bill Gates and such go and spend oodles of money, and they pay far more in sales takes than the puny little rebate check, so it all balances out. WITHOUT a lot of the crud of the current income tax system, which is sort of the point. Somebody making(and spending) $20k a year will pay a lower effective rate than somebody making & spending $200k/year.
You don't think an audit checks your income? And I was accused of being naive because I didn't agree that it was an anal probe process.
CURRENT audits check income because it's part of how your tax owed is determined. That's part of the 'anal probe'. An audit to make sure that you're a living citizen/legal resident doesn't require your income to be checked because it doesn't matter to your return. Much like how current audits don't check to see what you had for dinner last night, because it doesn't affect the audit.