While your article tells how Scientologists thought up the idea of Fair Tax, those charlatans didn't invent the idea of sales taxes. We've had VAT in European countries for quite a while, so I'll explain how it goes accounting wise here in Finland. <br> <br>Basically, your company needs to pay that 22%(or 30% in US) of the tax free part of the selling price as VAT. You'll get to deduct the VAT from any company expenses(exept for representation) and need to pay the remaining sum monthly. This means that you'll need to do accounting monthly, and have 45 days after the end of the month to do accounting, fill in the VAT control report, send it to tax office and pay the VAT. <br> <br>So, there will be some new tax bureacracy, but it will likely be less work for your federal goverment than the income tax bureaucracy Fair Tax would remove in your system. <br> <br>Also, I don't believe in 30% increase in prices in US if Fair Tax is introduced. There are other factors, such as removal of other taxes and competition which will probably draw it down some. When we introduced VAT here in Finland, it replaced some corporate taxes, so we didn't experience a high increase in prices, definitely not as high as 22%. The prices might have gone up after that, but it wasn't a drastic sudden increase.