Yep, and subsequently the original 23% estimate of the revenue neutral tax rate for the NRST is falling rapidly. During that 10 years the the revenue neutral rate calculated for the FairTax has ranged between 24% and 19% with 2003, the latest done, standing around 19.5%.Not true, the latest number was calculated by Treasury for the Tax Reform Panel and they determined the rate would have to be 25.4% inclusive just to replace the income tax.
Not true, the latest number was calculated by Treasury for the Tax Reform Panel and they determined the rate would have to be 25.4% inclusive just to replace the income tax.
Of course you can provide the intimate detail of that determination so that all can peruse the basis and how much modification to the provisions of the actual FairTax legislation were introduced to derive such a result.
It has been my experience that such determinations are based on broad assumptions about a retail sales tax system with an artificially narrowed taxbase substantially different from the tax base provided for in HR25.
Judging from that number, I would suspect the authors of that determination od spending a lot of time with W. Gale over in Brookings.
Right! And Treasury runs the IRS, eh? There's a little thing like an $11 billion IRS budget to protect via the status quo I would think.
I don't think that would be judged arms-length at all.