The hidden regressive nature of the income tax

After reading the report about the regressive nature of the FairTax, I felt compelled to submit a few comments on this subject.

The Fairfax, in my way of thinking, is much less regressive than the income tax. The regressive nature of the FairTax is just more transparent than the Income Tax, so it`s an easier target for those that oppose it. This is because the regressive nature of the income tax is hidden in the compliance costs as well as the way it's
administered.

Any middle class or lower class person who has ever made the effort to take advantage of the loopholes that are afforded the wealthy will quickly discover that the cost of doing g so is prohibitive in terms of the risk of audit and associated accounting/attorney costs. If one is persistent, you may be able to prevail, but your ultimate tax savings will be wiped out by the cost of making your case. I have
first hand experience at this.

Further if a large percentage of the population starts taking advantage of these loopholes, congress changes the rules. I saw this happen in the early eighties disguised as "tax simplification".

You can be assured that a wealthy person facing an IRS audit feels much more comfortable than a person with limited resources. I have never been able to see the balance here, a sole individual competing with the entire resources of a federal bureaucracy. The intimidation factor increases exponentially as one's available resources diminish.

So if one considers 1) the Prebate and 2) the fact that the poor are not taxed on their wages (FICA), and 3) that there is less and equitable compliance cost, the FairTax is far and above less regressive than the income tax.

I conclude with one final thought about the income tax. Based on what I have read, I have a strong suspicion that the Enron debacle (and other incidents of corporate financial scandal), besides being brought on by greed, had the income tax code as a complicit catalyst at the root of it's cause. This is fourth potential example of the hidden regressive nature of the income tax, as this type of scandal costs us
all, over and above our tax cost. I'm wondering if this will ever be revealed, or if we will continue to blindly follow the pied piper.