Lets see. I make $100,000 today but my take home pay is $80,000. Tomorrow the FairTax is implemented and my take home pay is $80,000.
The difference is and I am worse off how?
The problem is that is not how it works in the real world. In the real world there is no mechanism to reduce the wages from $100K to $80K, so wages stay at $100K. Well you say, what is wrong with that? That means prices can't come down nearly enough to offset the tax. After tax, prices have to rise about 20%, which is fine for all those people earning income because they are taking home more money. But for people who are retired, they have just seen the purchasing power of their next egg drop 20%. Huge problem for retirees.
Lets see. I make $100,000 today but my take home pay is $80,000. Tomorrow the FairTax is implemented and my take home pay is $80,000.
Wrong. Assuming for this excample that the $18,000 of the deductions are going to the Federal Government as taxes of one sort or another (IncTax, Fica, etc. The FairTax is implemented, the Feds no longer takes the $18,000 -- your take-home pay is now $98,000.
Lets see. I make $100,000 today but my take home pay is $80,000. Tomorrow the FairTax is implemented and my take home pay is $80,000.The difference is, before, your $80,000 was after taxes...After, your $80,000 is yet to be taxed.The difference is and I am worse off how?