>>Look at the whole picture:
Presently, the cost of imbedded taxes raises prices 20 to 25%.
Presently, the feds take 20 to 30% of your INCOME.
The FairTax will only be 30% of what you SPEND and prices will be lower because that imbedded taxation cost is GONE.
You will have a lot more to spend. Spending will not go down.
You are being illogical or dishonest to say otherwise.<<
Look at the whole picture. You have only touched on a piece of it. Keep in mind, the government will need the same money it always needed, except they will get it in a different way. Do not think your tax will go down. Look at what you pay in federal taxes, along with what the companies that produce and market pay in federal taxes (hidden in the prices). It will all be exposed now as a separate, naked, sales tax.
I think I am being conservative at 35%.
See my #532. 35% is extremely overboard, the actual revenue-neutral rate (in the absense of FCA or other credits) is a hair under 21%. The additional credits bring the rate up to 23%.
I am under no illusion that my taxes would go down. I know that they will increase. That's not a concern for me though. Ideologically, this is a necessary first step in reducing the size, scope, and power of the government.
I understand how the tax will be disclosed. The rates ranges were good faith guesstimates of what the government takes now.
My point is that the price of any item will decrease with the removal of the imbedded taxes BEFORE that FairTax gets added back in. Overall prices will remain relatively stable.
"Look at the whole picture. You have only touched on a piece of it. Keep in mind, the government will need the same money it always needed, except they will get it in a different way. Do not think your tax will go down."
I AM looking at the big picture. Consider this - although you make a valid point in that the propsal is revenue neutral, that does not consider the enormous savings in compliance costs. Those are costs that are borne either directly or indirectly by every taxpayer. These are in the hundreds of billions of $$$. They are a drag on our economy and a waste of resources.
If all the FairTax did was to save hundreds of billions in compliance costs, that alone would justify its passage. Fortunately, it does much more.