Your “facts” I’m afraid, are not correct in regards to the “burden” the Fair Tax would place upon governments and on having to pay the money up front. Regardless of what some consultant may say, I would kindly suggest checking out and reading the actual bill itself. Its not a massive bill written in typical “legalese” as many bills are, but is an easy read and very straight-forward.

I have a copy of the bill as it was introduced in the current congress and it states that those responsible for collecting the tax (sellers at the retail level) must remit said taxes for each month by the 15th of the following month to their state agency responsible for collecting the monies. That state agency then has 5 days from that point to remit those funds, less its permitted administrative fee, to the US Treasury. No up-front monies required at all. You will not find that anywhere in the bill.

Will governments have to pay the Fair Tax? Yes; but if you ever were familiar with the details of the tax you would know that once the built-in costs of our current tax system are removed and the consumption tax applied, the governments will be paying out the same amount of cash for their purchases as they are now. So there will be no massive (or any amount) of increased cash advancements or costs to local or state governments. As a matter of fact, they will experience a decrease in their costs as the administrative costs related to their payroll operations will be less.

Hence, with all due respect, I would encourage you and anyone else who has any questions about the Fair Tax to go to the source – the actual bill itself – and read it instead of relying on a book or study or pundent for an understanding of exactly how the tax would operate.

You say you want Fairtax? Did you know Fairtax has a massive and bogus and deceptive 800 billion dollar tax on government spending?

300 billion of that tax, according to Fairtax fine print, has to be paid IN ADVANCE.

Yes, in advance. IN ADVANCE. New York City government, for example, would have to pay 1.1 billion IN ADVANCE. All cities– all 20,000 of them.

Massive taxes. Souix City Iowa would have to pay 14 million — in advance. LaCross Wisconsin would have to pay 7 million IN ADVANCE. On and on and on.

State governments too. Texas state government would have to pay 3 billion IN ADVANCE. did you know that? All state governments.

This is revealed in one of their foot notes, footnote 19, in the Fairtax document by David Tuerck, of Beacon Hill Institute, which is essentially a public relations firm that is paid to fool stupid people, frankly. Go check out their footnote.

http://fairtaxfineprint.blogspot.com/