Blowing a HUGE hole in Neil Boortz's "UnFair Tax" scheme

[Hugabear]

He claims that the Fair Tax is revenue-neutral - that is, that the money collected under the Fair Tax would equal the amount of money currently being brought in under our current system.

BULLSHIT. Here's why. Let's assume, for the sake of argument, that the Fair Tax were implemented exactly the way he wants it. He claims that under our current system, 23% of what you pay for retail items goes to "embedded" taxes. One of the Fair Tax's central tenets is to completely eliminate all corporate taxes. He claims that once corporations no longer have to pay taxes, those embedded costs will disappear, and we would be paying the same price for goods that we are now.

Fine. I doubt very much that corporations are going to drop their prices out of the goodness of their own heart, but let's just go along with his little argument.

So you're collecting taxes from individuals, but not businesses.

How exactly is this "revenue neutral"? How do they plan to make up for the tremendous shortfall that would result from businesses no longer paying taxes?

[moez]

1. according to factcheck.org

the number for tax neutrality is more like 30%

http://www.factcheck.org/taxes/unspinning_the_fairtax.html