How will the FairTax reduce tax evasion?
The old aphorism that nothing is certain except death and taxes should be modified to include tax evasion under the current tax code! The IRS estimates that at least 40% of Americans no longer comply with the current tax code. Most of this non-compliance is unintentional and due to the enormous complexity of the present system. However, what this non-compliance costs the IRS raises taxes by over 33 percent for those of us who do comply! These IRS figures do not include taxes lost on illegal sources of income. Disrespect for the tax system and the law has reached dangerous levels, and makes for a system based on taxpayer self-assessment less and less viable. The FairTax will greatly reduce the problem of tax evasion. The FairTax is simple and straightforward. The increased fairness, transparency and legitimacy of the system will induce more compliance. The roughly 90 percent reduction in filers will enable tax administrators to more narrowly and effectively address non-compliance and wi
