[Your Nightmare]

I'm still waiting to hear how wages must decline if the fair tax comes to pass.

No. Wages must drop for prices to drop ~20% or prices can stay the same, exclusive of tax, and people can take home their check with no withholdings.

I'm still waiting for someone to give me a reasonable explanation of how prices can stay the same with the 30% sales tax while we are taking home what use to be withheld from our paychecks and getting $500 a month from the government. They don't call it the FairytaleTax for nothing.

(credit to robertpaulsen for this question)

[OHelix]

I'm still waiting for someone to give me a reasonable explanation of how prices can stay the same with the 30% sales tax while we are taking home what use to be withheld from our paychecks and getting $500 a month from the government. They don't call it the FairytaleTax for nothing.

What is the national average ratio of taxes paid to gross receipts?

[CSM]

"I'm still waiting for someone to give me a reasonable explanation of how prices can stay the same with the 30% sales tax while we are taking home what use to be withheld from our paychecks and getting $500 a month from the government. They don't call it the FairytaleTax for nothing."

How about the matching contributions made by our employers, yet not reflected anywhere on a paycheck. Add to that the reduction in compliance cost throughout an entire supply chain and intuitively a reduction would occur in the cost to produce a product or provide a service.