[goldstategop]

With the income tax gone, people will be encouraged to save money. There will be a penalty for extravagant spending. That's where a consumption tax hits people. Your figure does not factor in the fair tax allowing for an exempt basket of goods and services needed to sustain life. Like food and water and fuel in a reasonable quantity. Every one would still come out ahead. The money isn't taxed until and unless you spend it and tht remains YOUR decision.

(Denny Crane: "Sometimes you can only look for answers from God and failing that... and Fox News".)

[sitetest]

Dear goldstategop,

"With the income tax gone, people will be encouraged to save money."

People are already encouraged to save money. There are a variety of vehicles that encourage, predominantly various sorts of defined contribution plans for retirement. In fact, the bias in favor of saving money in some of these plans is fairly significant.

"Your figure does not factor in the fair tax allowing for an exempt basket of goods and services needed to sustain life. Like food and water and fuel in a reasonable quantity."

Actually, my figures calculate in the monthly government "prebate" check.

"Every one would still come out ahead."

If it's revenue neutral, everyone can't come out ahead.

If it's revenue neutral, then by definition, everyone will come out the same ON AVERAGE, but in specific circumstances, some people will come out ahead (I think some people will come out significantly ahead), and some folks will come out behind. Some folks (more than a handful) will get screwed.


sitetest