I've always suspected that the Fair Tax plan was to support a North American Union because it taxes based on spending in a location rather than depending upon citizenship (social security number) and income.  

 

After finding information about Canada's Goods and Services Tax (GST), now I'm sure of it.  The Fair Tax is intended to "harmonize" the U.S. tax system with Canada If anybody out there reads Spanish, I'll bet you'll find a similar proposal or an already implemented system in Mexico

 

http://www.gstpst.com/

 

http://canadaonline.about.com/od/personalfinance/g/gst.htm

http://en.wikipedia.org/wiki/Goods_and_Services_Tax_(Canada)

 

http://www.cra-arc.gc.ca/tax/business/topics/gst/menu-e.html

 

 

In the article it mentions harmonized taxes in reference to provinces - meaning that province sales taxes are added on top of the federal tax for a combined tax rate.   If the Fair Tax was adopted by the U.S., our state income taxes would have to be replaced by a state sales tax that would be added on top of the federal sales tax rate. 

 

Compare elements of the Fair Tax with Canada's GST

http://www.channelingreality.com/News/fair_warning_on_the_fair_tax.htm

 

http://www.livingstonintl.com/seminarsc.cfm?id=3192&action=published

http://www.fedpubs.com/subject/taxation/valueadded.htm

 

Anybody who tells you that the Fair Tax simplifies things should read this -

http://www.carswell.com/description.asp?DocID=1064

 

 

Other links -

 

http://freespace.virgin.net/john.cletheroe/usa_can/taxes/index.htm