Replies

In plain english, the Fair Tax rate would be 29.86% .. And be printed as such on a sales receipt. Correct?

In plain english the FairTax rate is 29.87% and no, that is not what would be printed on a sales receipt. By law, the sales receipt would have 23% printed on it. Of course, the state sales tax printed on receipt will be the tax exclusive rate. That won't be too confusing, will it? /sarcasm

This exposes the lie in their "for comparison" reason for using the tax inclusive rate. Who would be standing at a register long after the income tax is dead and buried and be wanting to compare the sales tax rate to the income tax rate? This is all a ruse to make people think the FairTax rate is lower than it actually is.

The NRST will never happen for one very simple reason. Anyone who has significant after-tax investments (and there are many) won't be supportive of it. And most of the movers and shakers in this country have significant after-tax investments. This includes most non-retirement investments and Roth IRA's.

If I have $200,000 in such an investment and have already paid 25-30% in income tax on that money, there is no way I'll support a "voluntary" tax at the same level when I spend it. There is no easy way to switch from taxing my inflow to taxing my outflow without screwing me over bigtime. Essentially I'm put into a position where I'm paying over 50% in taxes on my earnings in my lifetime. This of course assumes that I would like to enjoy the fruit of my labor by spending it versus leaving it locked in a vault so I can "voluntarily" avoid paying taxes on it.

Add all the baby boomers and busters together who've already made these investments and you won't get the votes. Our energy is better spent on the flat tax.

By law, the sales receipt would have 23% printed on it.

Um... no. Per the law, the tax must be separately charged and stated, but the law does not say that the rate (in either inclusive or exclusive form) has to be there.

In plain english, the Fair Tax rate would be 29.86% .. And be printed as such on a sales receipt. Correct?

In plain english the FairTax rate is 29.87% and no, that is not what would be printed on a sales receipt. By law, the sales receipt would have 23% printed on it.

Weird. -- You claim that a $100 receipt would show a 23% tax as $30 ???

I agree that it is mind boggling that Fair Tax supporters are trying to promote the Act by using a BS "model" to misquote the actual taxes paid.
The Fair Tax idea sells itself without playing games over percentages.
As I see it, the actual tax percentage paid would have to be printed on all sales receipts in any case.
That percentage would be 30%, -- dispite what you imagine.