How would it not be additional? If a government employee makes $50K today, it will cost the government $50K plus $15K under the fairtax. Well unless government employees take a pay cut. But why would they when cost of goods are going up?
[If a government employee makes $50K today, it will cost the government $50K plus $15K under the fairtax.]
This would still not add 30% to the current cost of government employees, however, as LL implies.
Currently, a $50K salary costs $50K * 1.0765 to include the SS/M on the employer side. So $53,825 is the current cost of the $50K employee.
So $65,000 minus $53,825 = $11,175 which is 21% increase in cost to government.
So if government salaries now total $150 billion, then they would jump up a whopping $30 billion ? Or if they were currenly $300 billion, it would add $60 billion ?
How much exactly are we talking about in additional spending ? Anybody have a figure handy for the total current Federal spending on salaries ?