But 'gross' in fairtax lingo means INCLUDING the fairtax. So it is in fact 23% inclusive or 30% exclusive. So it will in fact add 29.87% to all their non-educational purchases including salaries and benefits. Of course the states will save the SS tax on salaries.
"But 'gross' in fairtax lingo means INCLUDING the fairtax. So it is in fact 23% inclusive or 30% exclusive. So it will in fact add 29.87% to all their non-educational purchases including salaries and benefits. Of course the states will save the SS tax on salaries. "
Sorry, but you are wrong also. That's the very contention that all of you FairTax opponents have been making and it is flatly wrong as I said in #723.
You'd better study the formulas in the lead-in paper which clearly show you to be wrong. All the levels of government would save the 7.65% ER FICA portion as you mention, though, as well as that same portion on educational wages so, in fact the effective tax would be less than 23% as you're hinting at.
Of course the states will save the SS tax on salaries.Don't count on it. That's a battle yet to be fought and government employees are union.
The trust fund revenue pigdog's been lying about specifically calls for a Fairtax rate to extract 15.3% of the SS wage base from sales tax revenues. If employee's 100% paycheck is only 7.65% there's a hidden tax in the Fairtax rate for payroll type employees, unions aren't going to fall for that.