You would get to take home $1000, but prices would go up 20% or more. The point being, when the fair taxers did their economic modeling, they ASSUMED you would take a pay cut to $750. Therefore, their claims are misleading.
Most people are less concerned about the eclectic and arcane bits and pieces about the mechanics of the NRST than they are about the elimination of the present system and the unease caused by it's enforcers, the IRS.
Rather, I get to keep the $1,000 I earned! I get to say how I spend it. OK, prices rise by 20%, or whatever. I lived through the Carter years, and I survived. We'll survive this.
Headline-grabbing idiots who want to protest the war, or whatever, by withholding a part of their tax payments (or maybe even all of it) should disappear. They'll have to find another vehicle for their intellectual self-sodomy. How can you possibly put a price on something like that???
Only a true-blue, full-blooded idiot would argue in defense of the present system - either that, or someone who has a big investment in maintenance of the status quo.
No thanks.
On the upside, perhaps after NRST has become the law of the land, we'll see Hollywood coming out with an exciting new TV series, "Magnum, CPA"!
And besides, if the law is truly revenue-neutral, from the government's point of view, what's the problem? They get their money; they can (try to) continue foisting off on us all of those pork barrel spend-a-thons they perpetually engage in. How can they not be happy? (We all know the answer to that one!) And how can concerned citizens like yourself not express satisfaction with the outcome?
It's win-win all around!!!
Get with the program.
CA
... and to think you answered it WRONG.
It may even be that you'd get not only get the employee portion of withholding (the $1,000 figure) but possibly also the employer's portion ($1,080).
Not only that, but prices would not increase as stated but would actually decrease due to the removal of embedded tax costs which includes business income taxes and compliance costs.
Oh, and BTW Rongie, "the FairTaxers" assumed no such thing - that's a Squirrel assumption to fit in with the Status Quo they so love.