I think it’s a similar. I thought FairTax was just a flat national sales tax, but I guess the “prebate” makes it a little progressive.
Yes this system would seem very similar to FairTax which also had a monthly prebate included.
There are lots of things that’d need to be addressed.In a FairTax system, vehicles like Roth IRA or Roth 401k have already paid tax on earnings and income compared to traditional IRAs and 401k. So would you get an additional rebate on withdrawals from Roth accounts to avoid double taxation (once on income the second time on consumption)?
In any case, you’re right that it was debated a lot several times previously but the complexity of the issues involved in determining how progressive it’d be, how it’d impact various systems,etc is much more complicated to convey to masses for campaigning purposes than just throwing around terms like separate wealth tax or advocating the creation of a 70% bracket.