I was disussing the Fair Tax earlier this week. One person stated that ir realsy does not matter because the rich do not pay all the taxes they should As we were discussing it, the individual asked about the following.
There is a lot of compensation provided to actors, sports stars etc by various manufacturers. Examples would be clothing and shoes provided to professional sport stars or vehicles for personal use by the same individuals. The cost of these items under the current income tax system is a tax write off. The recepients may not report this benefit as "income" and therefore there is no income tax revenue collected. (big tax avoidance area)
Does the Fair Tax apply to the value of the goods provided for the direct use of the individual (retail) and would be paid by the manufacturer?
This was the first time anyone had brought up this. As I thiought about it later, it would provide a huge source of tax revenue. Tiger Woods receives two SUV's from General Motors for his personal use. Would General Motors be required to pay the Fair Tax based upon the value of the automobile provided to Tiger?