But you fail to include state income taxes. If states drop the income tax and piggyback off the NRST, then the state exclusive sales tax rates would have to be closer to the 5-7% level. Otherwise we are still stuck reporting income to the state.
But you fail to include state income taxes. If states drop the income tax and piggyback off the NRST, then the state exclusive sales tax rates would have to be closer to the 5-7% level. Otherwise we are still stuck reporting income to the state.That's a good point. Currently, according to the NIPA tables, revenues from state and local sales and income taxes are equal to 1/3 of federal revenues. If the states were to drop the income tax and pick up the FairTax base for their sales tax, they would have to go with a rate of ~10%. Which would be ~40% when added to the FairTax rate.