I’ve spent a bit of time destruction testing the Fair Tax Mark. If it is to be used as a fair methodology, it needs to produce fair results in all situations.
One way of showing an ineffective method is putting in two situations that you would expect to show a contrast and arriving at exactly the same result. Here I’ve taken a company with an actual effective rate of tax of 35% over six years and one with a rate of 6%.
Spot the difference (click for full-size):
“Surprisingly” the results under the FTMRNG are exactly the same. Both would score zero, despite the fact that one company has paid significantly more tax than expected and one significantly less.