[lucysmom]

BTW, the answers are yes to several of the questions you pose as the states do presently pay federal taxes on the wages paid to their employees so being Federally taxed hardly new.

Federal, state and local government currently deduct taxes (withholding) from the employee's paycheck and forward the money to the taxing authority (the employee pays). The FairTaxers would have us believe that government employees will get their entire check (no taxes withheld) and the agency will pay an additional 30% in taxes (government pays). Either the employee gets the whole enchilada, take home plus what was deducted in tax, and government kicks in an additional 30% (government cost per employee goes up); or the FairTaxers are misleading, and the employee will have the 30% tax deducted from his pay. (pay to the employee goes down, but cost per employee stays the same).

[pigdog]

You've got that wrong, too.