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>The FairTax provides a progressive program called a prebate. This gives every legal resident household an “advance refund” at the beginning of each month so th
by WillPostForFood 5y ago
>The FairTax provides a progressive program called a prebate. This gives every legal resident household an “advance refund” at the beginning of each month so that purchases made up to the poverty level are tax-free. The prebate prevents an unfair burden on low-income families.
- dragonwriter 5y ago> The FairTax provides a progressive program called a prebate That's not progressive (the marginal rate is flat, not progressive); its equivalent to a very low UBI [0] + flat tax. Is it better than a flat tax without a “prebate”? Yes. Does the prebate avoid a massive downward shift of tax burden compared to the status quo. No, it doesn't. And that's even before considering the fact that its not revenue neutral and is proposed by people who want to use it as leverage for social program spending cuts. [0] By the stated basis, its a UBI equal to the consumption tax on spending at the poverty line.