[Principled]

(slight edits)

Once you add the 30% tax you end up with about a 20% increase in costs.

You are omitting the income tax from your "costs" but including the nrst tax. That's why your numbers are off.

While it is true that nrst tax inclusive prices will be higher, this does NOT mean the cost will be higher.

The cost of an item cannot be accurately measured in both tax systems without including the effect income and payroll taxes have on earnings!

You are trying to do a comparison omitting the effect of the income tax - ie your comparison completely omits any costs whatsoever to individuals from the income tax.

Can't do that.

Here's a comparison of costs, illustrating that higher nrst inclusive price is still a lower cost:

A $100 baseball glove I want to buy today costs me $133 in earnings (I have a 25% overall effective federal income/payroll tax rate).

Under the nrst, the shelf price falls to $91 by eliminating ER fica, business compliance costs, and any business income tax costs. My nrst effective rate would be a MAX of 17% - So using my 17% max possible effective rate, the baseball glove will cost me $109.64 in earnings.

Under the income tax, the glove costs me $133 in earnings.
Under the nrst, the glove costs me $109.64 in earnings.
Looking only at price omits the cost of the income tax to individuals. That gives an inaccurate comparison.

So even though the price is higher (100 vs 109), the cost is less under the nrst. When you remember to include the income tax in your cost calculation it's easy to see.

[lewislynn]

Looking only at price omits the cost of the income tax to individuals.

And looking only at rate omits the cost of a sales tax when you have the increased cost of government services.
The tax on rents
The tax on interest
The increased cost of your (GAG!)prebate entitlement.
The increased cost of Social Security payouts due to the increased cost of the Fairtax on all products and services including the new tax on medicare services from what was, for the most part, tax free money.
The increased cost of imports.
The tax on taxes, fees, excises and everything else included in a "gross payment".
The list of your "cost omissions" due to the Fairtax, causing a huge reduction in purchasing power is endless...If it wasn't there'd be no concern by Leo Linbeck about the action of the FED if the Fairtax was implemented.

I can't name one item or service that would be an increasd benefit as a result of an increased price due to a new tax...

Hence LOWER purchasing power due to the Fairtax.