THe wage base is waaaaaaaaaaaaaaaaaaaay smaller than the consumption base.
THe wage base is waaaaaaaaaaaaaaaaaaaay smaller than the consumption base.And one of the reasons for this is that the FairTax includes government consumption in the consumption base. And who pays the tax these government pay? The taxpayers through higher taxes, which means my nominal wages need to increase or my real wages decrease. Once again, you are just rearranging where the tax is collect. If the FairTax is truly revenue neutral, there can be no gain solely from where the tax is collected.