The IRS Tax Code presently puts embedded taxes in American product and service. By this billing, the individual or business would have to increase the price of their product and service the amount of the tax expense on service provided.
With the current system, business pay a 35% income tax(unless they bribed congress) and you know what families pay. The average embedding of tax is about 22% of product price and 29% of service price.
The only tax that would make the USA be able to compete with imports and tax their consumption equally as with a sales tax.
Now I see this transaction tax, a consumption of transaction concept and see they may be on to something. It took 6 months for FairTax to reach Eureka.
I asked some friends at FaceBook 'FairTax 2012' Group what they thought of this Transaction tax::
Glenn J. Shapiro~ Its a VAT in disguise (?).
EVERY transaction is taxed, so the level of taxes can be large when products pass through several, if not many middlemen.
Tony Leach~ Glenn is right, any tax on transactions will be passed down as a cost of doing business so it's a VAT on transactions. Either way the people still pay it and it's hidden once again. All these other plans do the same thing but still have taxes being passed on. Why bother if we can just push them all to the end of the line and free up the economy from taxes 100%?
R. George Dunn~ Thank you gentleman, it gelled!
Founding President of www.MiFairTax.org Roger Buchholtz covers the Vat Tax verses FairTax very well here: 'Flat Tax verse VAT Tax verses FairTax'