I'm a big supporter of the Fair Tax but when I heard Rand's answer, he doesn't understand it.
He stated that the FairTax would be harder on poor people because sale taxes affect poor people more than middle class/rich people. That's true, but the FairTax gives a prebate for legal citizens up to the poverty line that totally offsets the tax, so it doesn't affect them.
Here is why the FairTax would be awesome.
1)Illegal Immigration- Illegal Immigrants would not get the prebate and would start being taxed which would decrease their incentive to be here, that would cause them to go back to their own countries which would take a huge pressure off our hospital and welfare system
2)Only New Items are Taxed- People can avoid taxes by buying used items
3)Investments are not taxed- this includes education. It encourages people to invest- bye bye Social Security anyone?
4) Bye bye 16th amendment along with all other federal taxes
5) No more April 15- filing taxes is a big deal and the country spends way too many man/woman hours preparing taxes
6) Off shore account/investments would come back to the US economy
7)The tax base is broadened. While not a good thing at face value, it makes it much more difficult for the government to raise taxes if everyone is affected as opposed to now when it's like, "oh don't worry, only the evil smokers are going to be taxed, or the evil rich, or the evil people who drive SUVs...etc
8) Prices will fall because of the removal of all of the embedded taxes are gone from the products raw materials and transportation.
9)Businesses could actually make decisions based on what is best for the business instead of what gives them the best tax advantages. Running businesses would be much easier.