No, a 'Fair Tax' is not a good idea - American Thinker

No, a 'Fair Tax' is not a good idea - American Thinker - By Jack Hellner

• Let's take a look at the "Fair Tax" and see how fair it really is.

"Yes, it would tax health care and health insurance. 

Why would people think United Health Care, Aetna, and other very profitable companies would not only not pay income taxes or payroll taxes, but would also be somehow exempt from the fair tax as well?
Almost everything would be taxed, or else they wouldn't collect the money the federal government supposedly need.

The Fair Tax Act would impose a 30 percent national sales tax

Beginning in 2025, H.R. 25 would impose $30 in tax on each $100 purchase.** Proponents call this a "23 percent tax" because the $30 tax payment is 23 percent of the tax-inclusive price of $130. Yet described in more conventional terms — such as those used for existing state sales taxes — the $30 paid in tax is, in reality, a 30 percent tax on the cost of the goods or services purchased...

• What about cars? GM, Carvana, all car manufacturers, and car-dealers would not only not pay income taxes or payroll taxes, but also be exempt from the national sales tax? Only a childlike mind would believe that.
• Well, perhaps the monthly prebate will solve the problem for the poor, and that will take care of that. But how many bureaucrats would it take to calculate the prebate, administer it, and send out the money?..
• In reality, the lobbying for exemptions from the tax would be massive, but whatever exemptions were given would have to be replaced with higher tax rates....