Quote Originally Posted by ksniperfox
how would the government collect said fair tax? if it is paid through items purchased and not directly withdrawn from the income, it is up to the corporation to pay its share at the end of the month/year? gov't would have to keep a very close eye on how much every company has in sales, in order to calculate the correct taxage. i could see some fraud in businesses reporting what they sold. obviously withdrawing it on the spot from income paychecks has its advantages, but how would it work under fairtax?
discuss?
it would be collected the exact same way state and local sales taxes are collected now in the 45 states that collect it. For their troubles each business will keep 1/4 of 1% of their sales before they kick up to the states. The the states do the same while keeping their 1/4 of 1%.