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First of all your taxes presently are NOT zero - you merely think they are

I never said all my taxes were zero, just my income tax.

your current taxes are in fact a good bit more than zero since there are hidden taxes embedded in all that you buy (whether used or not). In #220 I was illustrating your spending the entire $40,000 for taxable things under the FairTax (not the income tax) - a worst case scenario.

Sales taxes and embedded taxes in my purchase price, right?

I also showed that your purchasing power will increase under the FairTax meaning that you can buy more "stuff" with the same amount of money.

So, my income increases (income and Soc Sec taxes now zero), prices will fall (that's what you mean by increased purchasing power) and I get a prebate?

Does the FairTax raise the same revenues for the government?

In your present $40,000 tax-free spending, I was including only the embedded (e.g., hidden) income tax costs - and not sales taxes in any form since those are primarily state taxes presently. Only the tax part due to the income tax.

If you realize that even with what appears to be zero income tax you still actually pay some income tax that is hidden you are far ahead in understanding compared to many taxpayers.

"So, my income increases (income and Soc Sec taxes now zero), prices will fall (that's what you mean by increased purchasing power) and I get a prebate?
Does the FairTax raise the same revenues for the government"

The answer to both points is yes (but it's really not your income that increases but your DPI - disposable personal income or purchasing power). At the 23% tax inclusive rate presently in HR25, the FairTax is revenue neutral as several different economic studies have shown. Keep in mind that the FairTax base of consumption is much greater than the income (wage) base. Roughly the same percentage rate in each (both are expressed in tax inclusive rates) yields more revenue under the FairTax than under the income tax due to the greater base.

The real concern is that with the economic improvement that comes with the FairTax, the rate will most likely need to be lowered before too long so that too much is not taken in ... and it'll be up to us as voters to raise hell with the congressmen to keep government from raising spending apace. We'll need to be hard on them to reduce spending as well as reduce the tax rate. Both will be possible.