“[W]hen you look at who’ll be collecting this tax, the chances of drumming up a conspiracy suddenly look even worse. In America, .03 percent of all of America’s companies—688 companies, to be exact—sell 48.5 percent of all of the merchandise. Those companies aren't going to help you cheat; there’s simply too much at stake. Date also show that 3.6 percent of all of America’s companies—92,334 firms—collectively make 85.7 percent of all sales… When it comes to the services sector, the fact is that 1.2 percent of all businesses make approximately 80 percent of the sales in the services sector. They have too much to lose to risk helping you cheat. Even if the FairTax were paid only by these few companies, we would still have a better collection rate than the IRS currently has with the income tax.”

“When Bill Archer (R-Tex.) was chairman of the House Ways and Means Committee, he routinely quoted an informal survey of five hundred international companies located in Europe and Japan. These companies were asked, “What would you do in your long-term planning if the United States eliminated all taxes on capital and labor and taxed only personal consumption?” Eighty percent—that’s four hundred out of five hundred companies—said they would build their next plant in America. The remaining 20 percent—the other hundred companies—said they would relocate their business to America altogether.”

“Let’s look at the state of tax cheating under the current system. In 2001, the last year for which information is available, the IRS reports that it collected $345 billion less than it was owed—or about 16 percent of all that was owed, a figure known as “the tax gap”.”

“Economists often talk about the 80/20 Principle, which is the idea that in any situation roughly 80 percent of the “work” will be done by 20 percent of the participants. In most societies, 20 percent of criminals commit 80 percent of crimes. Twenty percent of motorists cause 80 percent of all accidents. Twenty percent of beer drinkers drink 80 percent of all beer. When it comes to epidemics, though, this disproportionality becomes even more extreme: a tiny percentage of people do the majority of the work.”

“[O]ne macroeconomic study of the FairTax—a study that assumed that the employer’s share of the payroll tax is the only tax savings that will be used to lower prices—estimated that prices would rise by 24.8 percent but wages would increase by 27.4 percent, more than compensating for the increase in prices. By these calculations, disposable income is expected to increase by 1.7 percent.”

“Right now the top 50 percent of taxpayers pay almost 96 percent of the taxes. The top income earners--the evil top 1 percent--earn about 16.5 percent of the income and pay almost 33.7 percent of the income taxes. This is what Democrats call "not paying your fair share.”