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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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To: Always Right
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.
I actually don't think states would be inclined to go with the wider tax base because it would make their taxes more regressive. They would have to set up some sort of state-wide FCA.
586 posted on 02/17/2005 4:25:09 AM PST by Your Nightmare
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