Your question contains errors in fact. The federal tax burden is levied on businesses via SS/MC payroll taxes, corporate taxes and other taxes. This system of taxation on businesses accumulates in the price of products and services.
With every retail purchase, 22%-23% of the price is due to the accumulation and pass-on of federal taxation. This accumulation is known as the federal embedded tax in price.
The FairTax National Retail Sales Tax (NRST) replaces all federal embedded taxes that are siphoned from businesses deep and wide in the supply network. All of those siphoned federal taxes are ‘shunted’ to the retail end of the supply chain.
The new thing that disturbs Income tax lovers about the NRST is that it makes the federal tax burden visible. Obviously those with a stake in IRS do not want a light shone on the tax burden they oversee. They would rather remain in the shadows.
Lastly, the NRST is not applied to American exports. That means there will be an immediate reduction in prices of exports because business will no longer pay all the taxes that are abolished. This reduction in the price of exports will make American products and services greatly more competitive and will revive American manufacturing. In fact, other governments do exactly the same and that is why they are globally competitive whereas American international business is hamstrung by its current onerous system of taxation.
Proved to be outright bunk in many, many places. embeded taxes is the favorite urban myth if the FT/TP bunch
Your question contains errors in fact. The federal tax burden is levied on businesses via SS/MC payroll taxes, corporate taxes and other taxes. This system of taxation on businesses accumulates in the price of products and services.
When you compare tariffs to a NRST, American producers selling products at home, are taxed at the same rate as goods imported from communist/socialist economies, which frequently subsidize their exporters to undercut American producers. Tariffs are already provided for in the constitution and reasonable uniform rates provide all the revenue needed to run a constitutionally limited federal government. Promoters hope a NRST would replace the unconstitutional income tax and not be in addition to it, exchanging one agency for another to be the tax collector for the Federal Reserve. There is no need for a new NRST Revenue Service, tariffs could be implemented tomorrow.
Lastly, the NRST is not applied to American exports.
Of course not, American producers do not need to export products to Americans, but their goods would be taxed under the NRST. Tariffs would not tax American made goods sold to Americans, however the NRST taxes imported goods and goods made and sold in the US at the same rate.
This reduction in the price of exports will make American products and services greatly more competitive and will revive American manufacturing. In fact, other governments do exactly the same and that is why they are globally competitive whereas American international business is hamstrung by its current onerous system of taxation.
Replacing the income tax with tariffs would benefit Americans in two ways to a higher degree than replacing the income tax with a NRST. One by increasing our own standard of living by returning higher paying manufacturing jobs to the US economy and lower prices to Americans for American made goods. A NRST would be better than the income tax, but not as good as merely returning to tariffs. US tariffs would not be applied to American exports, either. I'm sure you will argue that other nations will retaliate with tariffs of their own. Let them. The American market is the one of the most desirable consumer markets in the world because it is the least socialist. Tariffs are preferable to NRST - because tariffs favor American jobs and American made goods, over goods imported from communist/socialist economies.
To be clear, we need to repeal the sixteenth amendment and replace it with nothing and fund the federal government with a nominal tariff applied uniformly.
Still highlighting your poor math skills I see.
>>With every retail purchase, 22%-23% of the price is due to the accumulation and pass-on of federal taxation. This accumulation is known as the federal embedded tax in price.<<
Do you know what the biggest components of that are?