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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
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To: Your Nightmare
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.

Some of that will be mitigated by the larger tax base (food, new housing, rents, internet sales etc.) that now go untaxed in most states. 6-8% may be low for some states, but a reasonable guess without crunching a ton of numbers.

585 posted on 02/17/2005 3:47:24 AM PST by Always Right
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