| Current system | FairTax system | |
| Gross income | $10,712 | $10,712 |
| Less payroll taxes | -819 | 0.00 |
| Less Federal income taxes | 0.00 | 0.00 |
| Plus Earned Income Tax Credit | +4,204 | 0.00 |
| Add the prebate family allowance | 0.00 | +3,701 |
| Spendable income | 14,097 | 14,413 |
| Federal sales tax | 0.00 | -3,315 |
| True after-tax purchasing power | $14,097 | $11,098 |
Here is what there chart should read if they want to use their number properly.
| Current system | FairTax system | |
| Gross income | $10,712 | $10,712 |
| Less payroll taxes | -819 | 0.00 |
| Less Federal income taxes | 0.00 | 0.00 |
| Plus Earned Income Tax Credit | +4,204 | 0.00 |
| Removal of the hidden tax passed along by your employer. | 0.00 | +3,101 |
| Add the prebate family allowance | 0.00 | +3,701 |
| Spendable income | 14,097 | 17,514 |
| Federal sales tax | 0.00 | -3,315 |
| True after-tax purchasing power | $14,097 | $14,199 |
parse words all you'd like but the only legitimate way to show the 'current system' taking away $3101 from the poor soul is to show it as being added in the new system.
in the current system the 3101 is not being taken away from the person's 10k income or their 4k EIC -- the way they show it is plain wrong aside from misleading.
Not so. The effect of removing the 3,101 from the present system is virtually a hidden tax that people pay in prices that are higher than they otherwise should be. The funds from that are taken from the Gross income under the present system but thy are NOT added to the gross income under the FairTax.
The effect under the FairTax is, as show in the original table to furnish the same gross income as before plus the prebate, resulting in the $14,413 spendable, The charts you have modified to present in your post illogically remove the hidden tax amount of $3,701 which is taken from the after tax wages of the worker in your first table and then to pretend in the second table that that amount somehow ends up as spendable income under the FairTax which it clearly does not.
Both of your tables are incorrect and show a false picture of the situation since the hidden tax never is spendable (in-hand) money after the FairTax except for the effect of reducing prices as I originally explained. The worker can spend no more than the $14,413 of spendable income under the FairTax.
The manner of presenting the table in the FairTax website shows this effect and it is a correct manner of presentation as just explained.