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.
Exactly, my problem, too. If something has to be sold like snake oil, hold on to your wallet.
The 20 to 25% is cummulative from raw material to finished product on the shelf as the amount of tax and compliance expense grows from step 1 to putting product on the shelf.