So right now, a top 50% earner pays 13.84% (per your example) of their income AND they pay about 22% of every product they buy. Under the FairTax, no income tax and a 23% inclusive sales tax.Let's safeley assume the top 50% earner is a producer. Where does his/her 13.84% of their income play into the 22% of the product? If it's included in the 22% are you saying s/he wouldn't get 100% of their paycheck? Or on the other hand are you saying the total tax collected from the product is 35.84%?
Either way it would be helpful if you could demonstrate how your scenario collects the same amount of tax it replaces
Yes, individual income taxes are part of the embedded taxes in the current cost of every product. Most likely, salaries will drop to current “take-home” pay levels.
So take home pay remains about the same. The cost of goods and services remains about the same. So your buying power doesn’t change much, if at all.
I’m no economist, so I’ll have to take the word of the numerous economists who studied and developed the FairTax that it is revenue neutral.