I have been doing a great deal of reading on the FairTax plan being proposed by www.fairtax.org and Neal Boortz. In my investigations of criticisms of the plan, I have come to the realization that people are clueless when it comes to understanding how taxes work. So I have come up with a simple theorum to explain how all taxes work. If others have posted similar ideas, please free to link them here. My theorem is this - The government has a set budget. It will set any tax rates accordingly to meet this budget. Any tax exemptions will cause the tax rate to be elsewhere to make up the difference. Tax evasion, legal or illegal, causes the same thing to occur. These changes will always shift the tax burden in an unfair manner from the whole of a society to specific segments of that society. Basically, no matter what, the government is going to get its pound of flesh. The question is whether or not that pound comes from everyone or a select few.