Under the graduated income tax that we now have, if you earn $130,000 taxable income and you're in a 23% tax bracket how much is your tax bill? Answer: $29,900 -- rounded off it's $30,000.
If you had $130 dollars income and your tax bracket is 23%, how much do you pay? Answer: $30.
Today if you earn $130,000 taxable income 23% of that will be tax. If you spend $130,000 total on new retail items your tax is 23%.
There's nothing deceptive about it. Every taxpayer will be in the 23% tax bracket when they purchase a new retail product or service.
That's a blatant lie. Are you aware of the Family consumption Allowance every family will get? That means that if your at the poverty line, you pay a 0% rate. If you make $40,000, you're around 8% or so. Plus, it's only on NEW ITEMS PURCHASED. So if you already own a home, a car, or buy one of these items used, it's NOT taxed. Savings aren't taxed, Education expenses aren't taxed either.
Don't make such statements. Here's the Progressive FairTax chart, based on 100% consumption of income. Keep in mind that the more money you make, your savings rate usually goes up accordingly. Take a look: