Can anyone point me to postings focused on implementing the Fair tax? It seems to me there are numerous logistical issues. For instance:
1. The federal sales tax is collected at the point of sale, the tax collected is forwarded to the state for subsequent transfer to the treasury, is that correct? If so what about states that currently have no sales tax collection procedures? How long and at what cost will it take for these states to design and implement the required software? What about software and personnel changes in all the other states?
2. Once implemented federal taxes embedded in the retail cost of all Fair Taxable items will go to zero as there are no corporate and personal income taxes, correct? How long will it take market forces to realign retail prices? And, during this realignment period won't prices be considerably higher on new goods and services? Will this be disruptive and potentially damaging to businesses if the transition and realignment takes longer than anticipated.
3. The prebate is actual cash sent to qualified/registered US citizens, correct? What happens if the federal government is a deficit spending status? Will the federal government have to borrow money to pay the prebate?
4. Is it feasible to pass the Fair Tax legislation without repealing the 16th Amendment? What happens if both actions don't happen at the same time? I maybe misinformed regarding the 16th Amendment repeal being apart from the Fair Tax legislation. I just seems they would have to be connected.
5. My sense is citizens and businesses will remain liable for the federal income taxes for the year prior to the Fair Tax implementation. Will this not necessitate keeping the IRS around for quite a while resolving prior year taxation/collection issues. So how much of the IRS cost can be eliminated and how quickly?
I'm looking for some help locating answers to these and other similar questions.