It's self explanatory to anyone who understands what "gross" and "payments" mean when used in conjuction with each other...I don't get my informaation from the pretty words at the fairtax website, I read the legislation.
Don't include me in a specific debate with another poster.
I have no clue what your post said. My line of question marks was meant to indicate I didn't understand.
I have had none of my questions on this thread blown off by anyone, I would like to think you would be willing to follow the trend.
Okay then, since you won't explain it I will. It's like discount verses interest. If you have a payment due that is, say, 25% on a purchase, what is your charge? Here is a good example: If I buy a treasury bill due in one year at a discount rate of 10%, I pay 9000 dollars for a 10,000 dollar treasury bill and at the end of the year I get back 10,000 dollars. But in reality, I am only investing 9,000 dollars to earn 1,000 over that year. Hence my actual rate of interest is more than 10%.
So if I go into a store and plop down 100 dollars for a television set, I am not going to be charged 123 dollars under the fair tax, I am going to be charged 130 dollars. That is the gross payment minus 23%. That is my understanding. Is it correct? lewislynn?