[adamsjas]

Even tho Tobies paycheck is $300 dollars more...He still needs that extra $300 to pay for taxes. Maybe more.

Yes, just as he needs to cough up more taxes at the end of the year to pay his income tax.

FairTax was not meant to be a tax reduction.

There will be some reduction in prices, (approaching the size of sales tax) as the embedded tax all the way down the production chain will be eliminated, along with the cost of preparing those taxes.

It not a tax rise. Its not a tax cut. It is carefully designed so that the the overwhelmingly vast percenage of people will pay the same tax as now, but without an IRS to deal with.

[Conservative Goddess]

"There will be some reduction in prices, (approaching the size of sales tax) as the embedded tax all the way down the production chain will be eliminated"

Did you know that the FairTax legislation includes a 23% credit for all finished goods inventory, all work in process as of the date the FairTax is enacted? That will allow prices to drop 23% on day ONE, without compromising profit margins.....No need to wait for taxed goods to work their way through the supply chain.....