[OHelix]

The "trick" is in not accounting for the increase expenditures required to pay the tax. They have the government giving themselves money, counting it as revenue, and not accounting for it as an expenditure. Using this method, we could eliminate all taxes on individuals and just charge the federal government a 1000% sales tax. That would generate tons of revenue.

Maybe I'm misunderstanding what it is you are refering to. Are you refering to Government Enterprises charging tax on taxable products and services?

I thought I remembered reading the tax on wages portion before, but can't find it. I'll keep browsing. Point me to what you are referring to if you are willing.

[Your Nightmare]

Maybe I'm misunderstanding what it is you are refering to. Are you refering to Government Enterprises charging tax on taxable products and services?

No, I'm referring to the fact that the federal government is paying itself a tax and the FairTax only accounts for the revenue this generates, not the increase in expenditures it would cause. It's as if I gave myself money and considered it income. It doesn't work that way. You have to account for that money on both sides of the ledger.