Unspinning the FairTax - We look at the numbers behind the numbers.
Thanks to FactCheck.org (includes sources)
A pretty good analysis, although not completely fair to the fairtax. Much closer to the truth than the fairtax analysis, but they don’t take into consideration several things. There will be some cost savings to businesses that will result in the pretaxed prices coming down, but not nearly the 23% the fairtaxers have claimed. More like 5-8%. And in reality the fairtax numbers don’t assume 100% compliance since the statistics they use are based on numbers that include the non-compliance of the current system. Although the number of non-reported retail transaction is surely to increase.