#3 | POSTED BY MUSTANG
Prefer the FairTax vs VAT myself.
Having said that I'll have to brush up on it as it looks like they've made some changes to the idea from when I last read it (4+ years ago).
ie, back then it was 20+k a year in prebates (to cover clothing/ unprepared food etc that is normally not part of a sales tax) and is now down to like 7800ishk. Have to see what other changes were made.
Back when I read it, the tax also only applied to new products. Ie, if you bought a used car no tax was collected, same with buying a home, if you buy brand new construction, it's taxed, otherwise it's not. If you manufacture something no tax is paid on supplies (only the final product) which from what I understand is the biggest difference to the VAT tax which applies to everything along the manufacturing path.
The tax is also built into the prices so the receipt shows 100 as the price, it's 100 you pay. Making tax increases harder to 'slip in' along the way. The key thing for me about it is that it collects from tourists as well and applies to the cash only crowd as well...bunch of other things but like I said, I'll have to bone up on it to see what changes were made that will probably make me hate it. :)