Okay.
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.
So, revenue neutral means the government gets the same money. "DPI increases" means I have more money in my pocket.
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.
Great, this must mean prices will drop. Is there anything the FairTax can't do?
I'm telling you, this is perpetual motion. Sign me up!!
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.So, revenue neutral means the government gets the same money. "DPI increases" means I have more money in my pocket.
Yea, more money in your pocket, but pay no attention to the 30% sales tax. Apparently, unless someone is using clever double talk, "revenue neutral" means the government gets MORE money...On the one hand it's revenue neutral, on the other it "yields more revenue"...depending on what you want to believe I guess.
BTW, The Fairtax is "23% OF the gross payments"(including itself) not 23% ON the price.
$100 = $130.00...$30 is 23% OF $130(gross payment).