What we get..
Here's where I think we are with how the FairTax would actually work in practice...
Feel free to comment.
ping
But if payroll runs 35% of your gross, that means the payroll savings is only 3% of the gross. And nobody is going to waste time lowering prices for a 3% (or even 8% change in costs) when they don't know how their customers are going to react to paying the 30% sales tax surcharge.
What we get..
Lets look at the "Prebate" part of HR 25. Along with keeping the "whole paycheck", comes a monthly $189/ per citizen in "your household".
My widowed Mother-in-Law will have that $189 to cover the increase in prices, each month. My kids will see their allowances go up; but by far less than their "prebate value". Our monthly "household budget" will have an extra $600 from "prebate money" to pay those "Higher Prices".
The tiny Corporation that I work for won't be paying income tax. The Price of its service won't need to include those Dollars, either. There is no "Corporate Income Tax in HR 25.