[ancient_geezer]

. Once that happens, the % of tax can be dropped.

Presuming the Bush Administration is successful in making its tax cuts permanent, the % of tax can be dropped right of the bat. One of the rules of the game laid down by Bush is revenue neutrality.

The Fair TaxAct 23% figure for tax inclusive rate was set for revenue neutrality under the Clinton tax law. Revenue neutrality under current revenue collections targets a somewhat lower NRST rate as indicated by Tax Foundation's measures of effective federal tax rates as a percentage of Net National Product.

 

refer Tax Freedom Day 2004 PDF http://www.taxfoundation.org/sr129.pdf

 

Total Effective Tax Rates by Level of Government Percent Net National Product(NNP)
Year	Federal	State	Total
1997	21.8%	10.3%	32.1%
1998	22.4%	10.4%	32.8%
1999	22.5%	10.4%	32.9%
20000	23.1%	10.4%	33.5%
2001	22.2%	10.5%	32.7%
2002 1	19.7%	10.2%	29.2%
2003 2	18.5%	10.1%	28.6%
2004 3	17.9%	10.0%	27.9%
Notes: Leap day is omitted to make dates comparable over time. Since depreciation is not available to pay taxes, GDP is an overstatement of spendable income for the purpose of measuring tax burdens. Depreciation is netted out of NNP. 0 Last year of Clinton administration when the HR25(Fair Tax Act) rate was estimated 1 Economic Growth and Tax Reform Reconciliation Act of 2001 2 The Job Creation and Worker Assistance Act of 2002 3 Job Growth and Tax Relief Reconciliation Act of 2003 Sources: Office of Management and Budget; Internal Revenue Service; Congressional Research Service; National Bureau of Economic Research; Treasury Department; and Tax Foundation calculations.

[Always Right]

I must stand correct. If ancient_geezer's table in post 626 is to be believe, states will have to add 10% inclusive to the 23% federal tax to get their current level of revenue. That's a 33% inclusive rate, or a 50% sales tax rate. My 35% guess was way too low. Imagine a 50% tax on every purchase! These guys can't be serious.

[lewislynn]

under current revenue collections targets a somewhat lower NRST rate as indicated by Tax Foundation's measures of effective federal tax rates as a percentage of Net National Product.

What a fraud, that's another clever lie.

That table has nothing whatsoever to do with, nor does it "indicate" any national sale tax rates.

Your bosses at AFT determined the sales tax rates by determining how much was needed to replace the proposed repealed taxes as a percentage of GDP...not "by Tax Foundation's measures of effective federal tax rates".