Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: lewislynn
29% tax inclusive in real sales tax terms would be a combined federal/state tax rate of 40.85% (29/71) tax exclusive.

Since states will be forced to eliminate their income tax and combine it with the sales tax they already have, it will make for a larger rate, although since the base of taxable goods will be larger (most states don't tax food and housing) the added rate probably won't be as high as 10%. I would guess it would typically be in the 6-8% range, resulting in a total sales tax of slightly more than 35%. Yes, very ugly.

582 posted on 02/17/2005 3:29:50 AM PST by Always Right
[ Post Reply | Private Reply | To 581 | View Replies ]


To: Always Right
I would guess it would typically be in the 6-8% range, resulting in a total sales tax of slightly more than 35%. Yes, very ugly.
We don't have an income tax here in Texas and my state and local tax totals 8.25%.

You also need to remember that under the FairTax state and local governments will be taxed on their purchases and the wages they pay their employees. Their costs are going to go way up and they will surely pass that cost along to their citizen through higher state and local taxes.
584 posted on 02/17/2005 3:37:36 AM PST by Your Nightmare
[ Post Reply | Private Reply | To 582 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson