I don’t know if ya’ll have figured this out yet or not but I fully support the FairTax. When talking to people about the FairTax one of the questions that comes up that I just don’t have good answers for is on how it will be enforced. Brad Warbiany gives us a good explanation here.

Common in the FairTax debate are the questions of avoidance and evasion. Due to these incredibly common questions, and the fact that the answers are not easy to find (even in The FairTax Book), I hope to give a full accounting here.

First, allow me to clear the air. I don’t believe that the claims that this will be collected and enforced by the state sales tax agencies to hold one iota of water. To the extent that some of the actual collection may be done this way may be true, but true enforcement will be handled by the feds. You see, the federal government can’t force states to collect the tax. States which choose to do so will, but any state which doesn’t opt into the “administering state” guideline will have the FairTax administered by the feds (HR 25, secs 401-404,).

I’ve studied the FairTax a good bit and this was very enlightening even to me. I hope you can benefit from this information as much as I have and I hope you are contacting your federal representatives and asking them to join the other legislators who have put their names on HR25 and S25 as co-sponsors of this bill.