Prebate payments ensure fairness for all from "summary" of The Fair Tax Book by Neal Boortz,John Linder
The Fair Tax system is designed to ensure fairness for all Americans, regardless of their income level. One of the key components of this system is the concept of prebate payments. These payments are essentially a way to offset the taxes that individuals and families would pay on essential goods and services under the Fair Tax. By providing prebate payments to all Americans, the Fair Tax system ensures that everyone has the means to afford basic necessities without being burdened by excessive taxes. This is especially important for lower-income families who may spend a larger proportion of their income on essentials like food, clothing, and shelter. The prebate payments are calculated based on the poverty level and the size of the household. This means that those who need the most help in affording essential goods and services receive the largest prebate payments, while those who are more financially secure receive smaller payments or none at all. The goal of prebate payments is to create a more progressive tax system that is based on consumption rather than income. This means that those who spend more on non-essential goods and services will end up paying more in taxes, while those who spend mostly on essentials will be able to offset these taxes with their prebate payments.- Prebate payments are an essential component of the Fair Tax system that helps to ensure fairness for all Americans. By providing these payments, the system helps to alleviate the tax burden on lower-income families and create a more equitable tax system for everyone.
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