[Your Nightmare]

The calculator isn't in error for the reason you say. The calculator assumes that people will use the rebate to reduce taxes. That's not an error.

It's an error. The only value the rebate has is for eventual consumption and when it's used for consumption, it is taxed. It's real value is reduced by the amount of the FairTax. You must calculate for this reduction in value when determining effective rates.

We have had this discussion before. IMO they should state this, but it isn't an error.

And as usual, you ignored reason in the discussion.

Just like today's tax refund amount is used to reduce one's tax burden, tax refunds under the nrst are used to reduce one's tax burden.

If today's tax refund were taxed as income, you wouldn't count the full amount of the refund toward your tax paid, would you? But today's tax refunds are exempt from taxation (for obvious reasons). The FairTax "prebate" is not exempt from taxation. It is treated just like income when used for consumption - thus it's real value is reduced from it's nominal value. You must use the real (or net of tax) value when determining effective rates. Not to do so is an error. Calculating for the real value of the "prebate" is achieved by including the FairTax paid when using the "prebate" for consumption in the gross FairTax paid.

[pigdog]

"The only value the rebate has is for eventual consumption and when it's used for consumption"

Not at all the case. It's intended value is to reduce the taxes paid and as such it is rightly not included in the calculation.

If it becomes used as additional consumption that is biasing the calculation to not be the equivalent of the same amount (without the prebate) under the income tax. The intent of the calculator is to give a taxpayer a reading of what his tax burden under the FairTax with the same income as under the income tax to be able to compare the two on an even basis. It's accurate and a good comparative tool.

[Principled]

The only value the rebate has is for eventual consumption ...

Wrong. The value of the rebate is to ensure that necessity level spending is not taxed. Here's an example.

Suppose a family of four has necessities that cost them 26,400.

When they buy those necessites, 23% will be tax. Hence 6072 of that 26400 is tax. (23% of 26400=6072).

Golly! the nrst rebate for family of four is..... 6072! Wow!

But necessities should be tax free- so the rebate is paid in advance. Nothing hard about that.