The key phrase is not the one you highlight, but is: "... that sales tax rate which is necessary to raise the same amount of revenue that would have been raised by imposing a 12.4 percent tax on the Social Security wage base ...". Since the wage base will increase more slowly than the total economic activity, this means that the rate so derived will actually provide the funds to match the 12.4% amount mentioned in the bill but that the proportion of that wage amount in the total 23% will actually fall from its present 27.43% to perhaps 25% (of the 23% rate) or possibly even less depending upon the increase in economic activity. This would actually free up more funds for the general revenue rate which would rise after 2007 from the 14.91% figure to, say, 15%.
That result would bring about a hue and cry from taxpayers to lower the rate from 23% (if it in fact starts at that level - which is too high). I suspect that even you and your friends would bitch to high heaven about having the rate "too high".
In other words, you've ignored the simple fact that the rate 23% (or other %), composed of the two entitlement rates that total into the overall 23%, are more likely to decrease from their current proportion of the total. That is FAR more likely that the results that you keep pushing with your nonsense "unelected bureaucrat" business. The FairTax will certainly boost economic activity - every single real economic study that has been done shows this. Pretending otherwise ignores what is obviously the truth of the matter.
"You are kidding, right? You didn't know the FairTax rate would change every year!?! "
The fact that the rates in question CHANGE is not the issue but that they are undoubtedly going to FALL rather than RISE.
The fact that the rates in question CHANGE is not the issue but that they are undoubtedly going to FALL rather than RISE.Whether it falls or rises wasn't the question. You said: "HR25 neither says nor means any such thing. Any change in the overall FairTax rate would have to be done by Congress, not some 'unelected bureaucrat.' Your statements are, simply, incorrect." But HR25 clearly states that "unelected bureaucrats" in the SSA would determine the rate every year. You were wrong. Maybe, for once, you will admit it.