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Always Right only mentioned employee compensation, so that is all that I responded to.

I'm glad you finally see why the 30% figure is incorrect for government employees.

At the State and local government levels, 3/4 the wages paid are to educators -- and not subject to FairTax. So those employees will cost 7.65% LESS than they do today. That roughly balances the 21% increase in costs for the non-education employees.

With the employee costs question out of the way, we need to ask just how much "purchasing" the State and local governments do. Grants, entitlement payments, pensions, school facilities, bond payments, etc. are all excluded from the FairTax, so how much spending is left subject to FairTax ?

At the State and local government levels, 3/4 the wages paid are to educators -- and not subject to FairTax.

The amount that state and local governments would pay under the FairTax has been studied. The conclusion was the states "would pay $346.2 billion in NRST to the federal government, an amount about 50 percent greater than current state and local general sales tax revenues."

At the State and local government levels, 3/4 the wages paid are to educators -- and not subject to FairTax. So those employees will cost 7.65% LESS than they do today.

Their wages wouldn't be taxable, but the building they taught in would be. The desks the students were sitting in would be. The books they were reading would be.

And where did you get your 3/4ths number? The information I could find says that in the U.S., out of $436,981,627 in K-12 education expenditures, $139,619,438 was spent on teacher's salaries. I really doubt $140 billion is 3/4ths of the state and local government salaries.

And the state and local governments wouldn't even save 7.65% on this number. The employer 7.65% is an exclusive rate, this would be a 7.1% inclusive rate and this is only applied to the wages of the employee, not their benefits.

I'm glad you finally see why the 30% figure is incorrect for government employees.
Don't flatter yourself, I didn't say that.
At the State and local government levels, 3/4 the wages paid are to educators -- and not subject to FairTax.
Where is that written? Only education tuition is tax exempt not public educator's wages, salaries and benefits.

Their wages salaries and benefits aren't exempt here:

`(4) EDUCATION AND TRAINING- The term `education and training' means tuition for primary, secondary, or postsecondary level education, and job-related training courses. Such term does not include room, board, sports activities, recreational activities, hobbies, games, arts or crafts or cultural activities.

Nor are educators wages salaries and benefits exempt here:

`(17) WAGES AND SALARY- The terms `wage' and `salary' mean all compensation paid for employment service including cash compensation, employee benefits, disability insurance, or wage replacement insurance payments, unemployment compensation insurance, workers' compensation insurance, and the fair market value of any other consideration paid by an employer to an employee in consideration for employment services rendered.

You aren't really very up to speed on what the Fairtax really is are you.