[Beagle8U]

"Please demonstrate"

A $1 item plus 5% sales tax= $1.05. Correct?

A $1 item under the (as advertised) 23% Fairy tax = ???

It sure as hell isn't the $1.23 most would think it was the way the plan is being advertised.

More like $1.30 depending how you round up/down.

[xcamel]

But if you believe their horse-hockey, your $1.30 would auto-magically be $0.97 - to argue/debate/discuss/ponder this with them is pointless.

[groanup]

But if you only bothered to read the FairTax website you would see that the question is answered in its entirety. Your accusations of being mislead are false. It is readily addressed.

http://www.fairtax.org/fairtax/faqanswers.htm#47

[pigdog]

"More like $1.30 depending how you round up/down."

Not at all ... in fact nothing like that. No item would ever cost that much but instead would be the $1 plus the effective FairTax rate which is substantially less then the marginal rate (which is what you pay the cashier, having already received the prebate to in effect reduce the tax rate).

Your illustration indicates you do not understand what's involved.