JOHN LINDER: “first of all, the IRS would be gone. Our Treasury Department would have several thousand people contracting with the…”

“first of all, the IRS would be gone. Our Treasury Department would have several thousand people contracting with the States to do the collecting. Forty-five States are already collecting sales tax. They have mechanisms in place to judge whether there is fraud involved. We would contract with the States to collect the money and we would pay them a quarter of a percent for everything they brought in for doing so, just as we would pay the retailer a quarter of a percent for collecting it. Every household in the State would sign up with that State once a year or, if they had children during the year, sign up again, and list the numbers of people in the household and their Social Security numbers so we do not have people living in every household. And then the Social Security department, which currently sends out about 45,000 checks a month, would handle the rebate. We envision the rebate to be nothing more than a computer click. This government is moving dramatically toward getting rid of checks, moving just to electronic transfers which are a nickel or a dime to make instead of the cost of taking postage and envelopes. So we think that every household will do nothing more than a computer click to put enough money in their account previous to the first day of the month; previously on spending it, that would totally untax them in terms of spending up to the poverty level.”