Prices fall even after the 30% sales tax is added?
The spontaneous appearance of unicorns will see that that doesn't happen.
Yes prices fall to their pretaxed cost, and the 30% exclusive tax or 23% inclusive is applied to bring price parity.
As in the example you were just shown, a 2x4 at Home Depot sits on the shelf at a price of $2. Under the FairTax a 2x4 will cost $1.54 but 46 cents will be put right back on at the cash register.
46 cents is 23% of $2. That’s the inclusive rate.
46 cents is 29.9% of $1.54. That’s the exclusive rate.
Toddler is trying to create confusion with a simple concept to wit:
Add 1 to 3 and you have increased the 3 to 4 for a gain of 33%. (Exclusive denominator is 3)
Take 1 away from 4 and you have decreased the 4 to 3 for a reduction of 25%. (Inclusive denominator is 4).
Toddlertard likes to create fear with the 30% exclusive snipe. The FairTax legislation requires both inclusive and exclusive rate be printed on a receipt. The FairTax National Retail Sales Tax NRST rate is quoted in inclusive terms because the income tax is quoted in inclusive terms, so a comparison is easier.