Yes, that would be hard to believe. You can't be serious.
Yes, the poor get a "prebate", which sound like an entitlement, but as you correctly pointed out, EVERYONE gets a prebate. So how could it be unfair?
And consider that the prebate essentially removes the need for any sort of welfare? Just think about that for a moment! Our current entitlement system is so bloated, innefficient and out of control it numbs the mind. Nobody will be going down the the 7-11 to sell their food stamps or WIC vouchers for half price to buy booze and cigarettes. They will just buy it with their prebate money and the scammers get none of it (except for the usual wayts that fools find to part with their money).
Right now, many employers pay illegals under the table to avoid payroll taxes. With the fair tax, there are no more payroll taxes. Workers get to keep what they are told they are earning. Most of the incentive to hire illegals evaporates right there by helping to equalize pay. Illegals don't get the prebate.
As I said earlier, otherwise intelligent people can always come up with some objection to any sort of tax plan. But I really can't figure out how you can think that this plan would be anywhere near as unfair or cumbersome as the current tax code. Yeah, the Canadian and European "VAT" are incomprehensible to the point that no one has any idea how much tax they are paying. Our current tax code is what gives the Federal Government most of it's control over our daily lives and what gives politicians such great power, and which gives the rich, who can afford an army of tax accountants, such leverage. But that is why it will never happen. The all powerful politicians and lobbyists for huge companies are afraid of it because it actually does help level the playing field for anyone.
I don't disagree with you and if it were put to a vote I'd probably vote for it. My concern isn't so much what is proposed, it is more what compromises and changes would be made along the way. Suppose for example, welfare is NOT stopped? Now they're getting welfare AND the prebate. And of course the rate can always be raised, just like income tax. But unlike income tax, there will be no way to shelter from it. And that would apply to everyone, not just "the rich". It's supposed to start out at 23 percent, but that's inclusive, it's actually 30% which is pretty high to begin with. For me to be comfortable with it, I'd want a Constitutional Amendment locking the rate.
For that matter, if there is no Constitutional Amendment revoking the income tax, there is nothing stopping the Feds from later on, adding back an income tax on top of the consumption tax.
I guess it's not the Fair Tax plan
per se I mistrust, it's the implementation down the road. People seem to think it offers some sort of protection from the abuses of DC, but that's a fantasy; there is no real protection. The problem isn't so much our income tax system, as it is how it's been distorted and grown in a malignant way. I don't see how the Fair Tax would be much more immune to the same thing, in the long run.