[SolarisRocks]

Under the FairTax, the national retail sales tax, there is no way to raise the tax rates on the rich, or to favor any one particular business group.

If it is a sales tax why isn't the tax rate computed they same way as sales taxes currently are?

When I currently buy an 100.00 item the tax, for a 8.25% rate, will be 8.25%. Under the FT rate of 23% the tax would be 29.XX.

Why call the FT a sales tax if it isn't? I LIKE the FT, it just worries me that they have to play clinton like word games regarding the rate.

[Prime Choice]

Let's not forget that prohibitively large sales taxes have a depressing effect on purchases. This will in turn necessitate an even greater percentage to be applied to all purchases in order to make up for lost tax revenues.

This will have two net effects: [1] a massive increase in black market transactions...all of which will strengthen organized crime while weakening the economy, and [2] cause a downward spiral in purchases which will cause layoffs which in turn will cause federal bailouts which will require even more taxes to pay off.

This "fair tax" plan is shaping up to be nothing more than national suicide disguised as tax reform.

[Sprite518]

Because the Fair Tax replaces all other Federal Taxes.

When you currently buy a 100.99 item your tax is a lot higher than 8.25%. You have already had Withholding (Federal, Social Security, Medicare) taxes taken out of your paycheck. Thus if you are in the 25% rate then you really was taxed 33.25%.

See that is the beautiful thing about withholding. We do not see it so we do not count it. Even though it has been taken out. The government made it this way because they know if Americans had to bust out a check every month for taxes....then there would be a tax revolt. However, if we cannot see it, then we act as if it never happened.

It is called the FT because that is what most people said after they read it and understood it. It treats everyone the same. Politicians cannot use it for a political without effecting everyone. In other words politicians would have a lot harder time raising taxes under this system vs. the current system where they say "we will just tax the rich"...

[Bigun]

New study out! Better read it as it's gonna leave mark!