[Man50D]

The tax rate would have to be ridiculously high and apply to all manner of goods and services.

Mr. Bartlett is being deceptive by not fully explaining inclusive vs exclusive or he is showing his lack of understanding about The Fair Tax. The dollar amount collected from The Fair Tax will be the same whether the inclusive 23% or exclusive 30% Fair Tax rate is quoted. He also fails to discuss most people are paying that much or more today much of it is just hidden from view. The income tax bracket most people fall into is 15 percent, and all wage earners pay 7.65 percent in payroll taxes. That’s 23 percent, without taking into account the 7.65 percent employer matching! That's more than 30%!

He also neglects to mention the effective Fair Tax rate (after the rebate) will reduce the tax rate on average to 15.5%. That same individual will pay 17.3 percent of his or her income to federal taxes under current law.

It would even result in the federal government taxing itself.

That simply means the federal government retains the money it already possesses.

The private sector retail sales base is simply too small to support a Fair Tax as a replacement for the current income tax.

A sales tax base is far broader than the income tax base as more people have to make purchases than have an income. This is especially true when unemployment rises during an economic down turn. The unemployed still have to make purchases.

Fair Tax ping!

[theBuckwheat]

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A sales tax base is far broader than the income tax base as more people have to make purchases than have an income.
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Additionally, it would secure tax revenues from people in the underground economy such as drug dealers and car thieves. It would also solve the problem of the IRS is preparing to “solve” by another massive invasion of privacy and imposed compliance, when it issues rules to require eBay to issue 1099 reports for all sales by US Persons totaling more than $600 in any given year.

[Obie Wan]

The distinction is confusing, but think of it this way. If a product costs $1 at retail, the FairTax adds 30%, for a total of $1.30. Since the 30-cent tax is 23% of $1.30, FairTax supporters say the rate is 23% rather than 30%.

OK,what am I missing? How do you take a 1 dollar product,tax it 23% and come up with 30 cents? I’m getting a headache !!!