Okay, using my 2003 tax return numbers, including income tax and payroll taxes, my family's effective tax inclusive rate was 24.27%. I did not itemize deductions in 2003, BTW. Under the Fair Tax, and using the 2004 prebate table, my effective tax inclusive rate would have been 20.53%, IF I spent everything I made on taxable items. Which I wouldn't, because I give money to charity, I have a mortgage payment, I have my parent loans from my childrens' college, investments and other tax free items I would use my money for.
Tell me why I wouldn't be better off.
Tell me why I wouldn't be better off.
You calculation looks like you are better off but you are assuming the FairTax rate would be 23%. It wouldn't. Lawrence Kotlikoff
has stated that "Simulation analysis and a variety of empirical calculations suggest that the retail sales tax rate needed for revenue neutrality under the Fair Tax, assuming no decline in the real value of government purchases, would be roughly 30 percent when measured on a tax-inclusive basis."
So 30% instead of 23%. You also aren't accounting for the federal taxes you would be paying through your state and local taxes due to the FairTax.