[Bigh4u2]

I used the calculator and it was interesting on the amount of savings over the current Federal tax.

What I’m curious about it how it would effect the State tax?

If the State got it’s money from the 23%, then I would agree that the savings is worth it.

But if the States are still able to tax you on your income the same as now, then the 23% is added on top of the State income and sales tax.

I haven’t read the proposal but I’m not seeing a savings if the current 11.8% tax is replace with a 23% tax and State income and sales taxes are not done away with.

[Issaquahking]

16% for the fed, 8% for the state and local, is the rough proposal.

[Bigun]

But if the States are still able to tax you on your income the same as now, then the 23% is added on top of the State income and sales tax.States predicate their income taxes on Federal income tax data. Once the federal income tax is gone, it is highly unlikely that individual states will be willing to implement the necessary infrastructure that would allow them to keep their income tax. A FAR more likely outcome would be that states would conform their sales tax base to the new federal sales tax base and raise the same amount of money they currently do with the sales tax alone and with a much lower overall tax rate.

Please see The FairTax: What’s in it for the states?