Okay, serious now... "Nothing in the Fair Tax bill requires states to go to a sales tax and drop their current income taxes."
How do those states (like mine, Arizona) who index their income tax based on your Federal AGI maintain their receipts? When the tax cuts kicked in 5-6 years ago, Arizona failed to reindex the State Income Tax rates and took a terrible hit in tax receipts.
I realize the answer is buried in my question, but it should point out that many states will take the easy way out and mirror the Fed VAT/NRST.
1) The NRST is not a VAT.
2) Always Right has contended that states will have to switch to a sales tax and drop their income taxes. I am mearly asking him to provide proof of this.
Mirroring the FairTax would lower the states rates by broadening the base. It would also make their tax system transparent and simple and fair.
That's a good thing.