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I agree, it seems quite doable. The specific number proposed by FairTax.org for the "prebate" is relatively low, making the overall result somewhat but not very
by _delirium 13y ago
I agree, it seems quite doable. The specific number proposed by FairTax.org for the "prebate" is relatively low, making the overall result somewhat but not very progressive (their proposal is a prebate equal to 23% of the national poverty line, e.g. $2650/yr for a single person with no kids). But that seems like a pretty simple issue to fix: just increase the amount, to whatever level of progressivity you'd like. If you increase it enough, you simplify the tax code and roll out something like a basic income at the same time.
It's true you can't approximate every possible tax curve you might desire using the model of a flat sales tax rate + a flat prebate, but by varying the rate and the rebate size you can approximate enough curves for it to be interesting.
- VLM 13y agoIt boils down to redefining the national poverty rate as a certain low fixed consumption/spending, rather than a certain low fixed income. Given that for poor people its pretty strictly income=spending its not a huge change.