- How will gas be taxed? There is no mention of repealing the federal gas tax in the Fair Tax Act of 2005. Does that mean that the 23% sales tax will be in addition to, and on top of the current federal gas tax? What about state gas tax? Will the sate tax that many of us pay, be taxed again by the federal tax? That's going to drive gas prices to near $4.00 a gallon.
- How will business to business transactions be taxed? If they are not taxed, what will prevent people from making personal purchases under the guise of that business?
- Fair Tax supporters mention that the Wal Mart effect will eventually bring prices down due to competition. How will this work with monopolies such as utility companies in many areas?
Here is an interesting article to read about some of the potential flaws in the Fair Tax Act.
These are just a few questions. If anyone has other questions to add, let me know. If anyone has the answers (Axe), please post them to educate us.