Did you know that hidden income taxes and the cost of complying with them currently make up 20 percent or more percent of all retail prices? It's true. According to Dr. Dale Jorgenson of Harvard University, hidden income taxes are passed on to the consumer in the form of higher prices - from an average 22 percent on goods to an average 25 percent on services - for everything you buy.
The link has a quick faq, link to the bill, and other info. Enjoy.
Been there - read it. I also think the figures are totally bogus. While it may be true for large corporations that require hordes of people to comply with complex regulations, it certainly not true that small companies devote 20% - 25% of their gross sales on taxes and compliance.
I guess my biggest complaint about the fair tax is the deception that is being used to sell it. Adding 30% to the cost of an item and calling it 23% is the starting point. Yes, I realize what the numbers mean and how they are derived, but it is a dishonest portrayal, as much as your 20-25% is.
The fact is, the people pushing the fair tax are those who are currently getting clobbered by the income tax. I can understand that and I don't blame them one bit, but there will be winners and losers in any change of policy, and it is the retirees that will suffer under a consumption tax.
That is, unless we all move to Costa Rica and spend our bucks there, but then your percentage of fair tax will most certainly have to increase to make up for the shortfall.
In my mind, the correct solution is to rid government of its excesses. If we cannot accomplish that, then it matters little what form of taxation we have because our contributions will continue to skyrocket.