There is a fundamental problem with the Fair Tax where the middle class will foot most of the bill anyway. It will not pass in a form where it applies to buying and selling of companies and stock and the income prebate cutoff would be too low to help non-poverty families.
You want to spend $10M buying a business? You won’t pay $1M on taxes for that even if the Fair Tax is 10%. What about the sales tax the business pays? Well, if it’s wholesale or B2B, it’s exempt anyway or else we’ve enacted VAT. Say it’s not in those categories though, like a middle tier appliance shop or something…the sales tax is passed back to middle class in a disproportionate manner because a refrigerator or washer/dryer winds up being a significant portion of income for a family on $85k/yr but pocket change to one on $600k/yr.
