My understanding is that there are up to 23% in corporate taxes embedded in the cost of goods, not 7-8%.
Employers would not pay any taxes either and that should dramatically reduce cost.
Could you breakdown the 23%?
I guarantee that every corporation of 50 employees or more in the United States spends more money each year to be in compliance with worker health benefits than they do for taxes, and FairTax does not eliminate the ordinary bookkeeping, nor reporting of salaries, thus any proposed compliance savings are minimal at best.
People keep trying to build these houses of cards, but they continue to fall flat. Expect counter prices for goods to be either at, or above a hundred and fifty percent of what they will be the day before. Without a doubt, the largest employer in America, that being businesses with ten or less employees, will find their tax burden multiplied under this plan when leases and utilities and advertising fall under these taxes. I know my own small business faces $2,500 a month in FairTax liability, which is roughly 10% of the monthly gross. Yes, I'm also counting in there the loss I'll take every time someone uses a credit card to buy an item, because the compliance percentage benefit is smaller than the credit card transaction charges.