NO! And this is very simple to understand. As it stands right now, the IRS is in place to ensure ~165,000,000 individuals and ~22,000,000 businesses collect and remit taxes. That’s ~185,000,000 current collection points (and points of potential fraud).
The FairTax makes two (2) very drastic changes that eliminates the need for the IRS or an IRS-like organization:
- Individuals will no longer be required to collect and/or remit taxes. The FairTax is paid directly to Businesses when we purchase their NEW goods and/or services. That means the number of collections points just dropped from ~185M to ~22M (a ~90% reduction).
- Businesses will remit the taxes they collect to their respective States (as they do now for their current State Sales/Income Taxes). That’s ~22M businesses split between the 50 States.
If you think about it, each State would be considered the “IRS-like organization”, but they’ve been dealing with the collection of taxes from businesses from the beginning. The FairTax would not change their attitude or method of tax collection? The only thing the FairTax would change -in this aspect- is that States would have to forward on 99.75% of the federal taxes they collect.
So now, I ask you: With Individuals out of the loop and States collecting taxes from businesses, what would an “IRS-like organization” even be needed for?