[pigdog]

Anyone having only tax-free non-wage income will pay no income or payroll tax but they will pay the embedded taxes that are embedded into the prices of all that they buy under the income tax. That's less than income/payroll taxes, but still an unavoidable tax/

If with the FairTax a large number of people tightened up on their spending habits it wouldn't be a crisis but it would begin to make the government re-think its spending plans when combined with taxpayer protests that are sure to follow since - keep in mind - many of these new taxpayers will never have (knowingly) paid even income/payroll taxes before; they won't like it, either.

[lucysmom]

If with the FairTax a large number of people tightened up on their spending habits it wouldn't be a crisis but it would begin to make the government re-think its spending plans when combined with taxpayer protests that are sure to follow since - keep in mind - many of these new taxpayers will never have (knowingly) paid even income/payroll taxes before; they won't like it, either.

But why should taxpayers revolt when they have more purchasing power?