CAN CONGRESS JUST SIMPLY RAISE THE RATE OF THE FAIRTAX?
Yes, of course Congress can raise the FairTax rate just as it could raise the flat tax rate or can and does raise the income tax rate. However, the FairTax is highly visible. And because there is only one tax rate, it will be very hard for Congress to adopt the typical divide-and-conquer, hide-and-disguise strategy employed today to gradually ratchet up the tax burden by manipulating the tax code. Ultimately, the tax rate will be dictated by the size of the government. If government gets larger, higher tax rates will be required. If government shrinks relative to the economy, then the tax rate will fall.
