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Doesn’t matter - you already had to earn the $128 and pay the income tax on that ($28) to have the $100 to buy with. So in effect to you it was really a $128 purchase but you’re too smart to grasp that apparently.

Doesn’t matter - you already had to earn the $128 and pay the income tax on that ($28) to have the $100 to buy with.

Doesn't matter? I already paid income tax on my saved money and now you want me to pay a sales tax too?

The bill is written so that the same amount of money that is presently taken from the income tax system is taken from the FairTax for the SS & MC entitlements.
You should read the bill where it is explained.
567 posted on 12/26/2007 1:53:00 PM PST by baybabe
you already had to earn the $128 and pay the income tax on that ($28) to have the $100 to buy with. So in effect to you it was really a $128 purchase

A $128 purchase and the total tax paid is $28. You claim 9% of the $100 is embedded tax making the total tax collected as the result of the sale before the Fairtax Act, $37.00.

After the Fairtax and the (9%) embedded tax is removed, the price is reduced to $91. The after tax price including the deceptive 23% inclusive tax of $27.18 is $118.18 making the total tax collected after the Fairtax $27.18.

I couldn't find anywhere in the bill that says collecting $27 rather than $37 is revenue neutral.

I did as you suggested. I went back through the threads and all the information and I found where the Fairtax economist says the current take home would be the new gross after the fairtax, IOW, no 100% paychecks.

So in the above example, under the income tax the purchaser had enough to buy the product.

Under the Fairtax the purchaser would be $18.18 short of having enough to purchase the product from his/her paycheck...AND there isn't enough tax collected to make it revenue neutral.