[RKV]

Understood and agreed that it is better to tax once than many times. LOL, I have an MBA, so I know a bit about economics. I am not naysaying the proposition (NRST). What I am concerned about is what happens to retired people of fixed means. I am not one of them, but I do have parents who are. I hope to be one myself someday. Several here have either missed the point of my question all together or said they answered it when they had not.

[Zon]

What I am concerned about is what happens to retired people of fixed means. I am not one of them, but I do have parents who are

Here's one example: a loaf of bread that costs a dollar has 22 cents tax embedded in it. Strip out the embedded taxes -- which the NRST does --  and the loaf of bread costs 77 cents. But now you have to tack on a 23-cent retail sales tax  to the bread. Thus, the same loaf of bread still costs 77 cents plus 23 cents in tax. Retired people on fixed incomes will ultimately pay the same prices they are now.

Actually, it's better than that. Under the income tax there is no sales tax on medicine. But, a $50 bottle of pills still has roughly 23 cents of tax embedded in it So even though the total price for the bottle of pills is the same under both tax schemes, the prebate check from the government pays the 23% tax.

[kevkrom]

What I am concerned about is what happens to retired people of fixed means

1. As has been mentioned several times, current prices are inflated by having roughly 20-25% of their cost as the result of income taxes. Remove that cost, and with the NRST proposed 23% rate, prices should stabilize in the roughly +/- 5% of today's rpices.

2. Any income received (pensions, investments, Social Security, whatever) will be tax-free

3. The family consumption allowance (FCA) offsets the NRST up to the federal poverty line. This especially helps those on low, fixed incomes by making virtually all of their spending effectively tax-free.

See FairTax.org's research paper for futher analysis.

[Principled]

What I am concerned about is what happens to retired people of fixed means.

If that is your concern, then I think you will like the NRST.

FAQ

[ancient_geezer]

What I am concerned about is what happens to retired people of fixed means. I am not one of them, but I do have parents who are.

In addition to the FCA demogrant that everyone gets, and lower consumer prices, the price index used to adjust SS for cost of living increases would incorporate the NRST rate into the base index to assure that they recieve SS with no loss in purchasing power with respect to their current status under Social Security.