I have gone over this in details before, but let me give you a guestimate of what happens. Business save $350 Billion from their share of FICA taxes. Business will save another $200 Billion in Corporate taxes. Compliance costs savings results in another $100-150 Billion in savings. A total of roughly $700 Billion in savings to businesses. The remaining $1.3 Trillion in taxes is paid directly by individuals and will go in their pocket and will not be savings realized by businesses. The tax numbers can all be confirmed from the IRS website. Personal consumption in this country is roughly $10 Trillion. The $700 Billion in savings represents 7% of the total costs of goods. Prices can only come down 7% if employees pocket all their current paycheck. Add a 30% sales tax on to the goods, and prices go up 20%. A sales tax may or may not be a good thing, but as this article confirms, and my analysis shows, and as the FairTax researcher himself, Dr. Jorgenson says, the rhetoric the fair taxers spin is false.
So if you assume paychecks go up, which is what they would under this bill, you must admit prices will go up substantiall too. There is no other way.
Good points. So the question still remains is it worth it to eliminate the income tax? I think so provided the sixteenth amendment goes also.