The Fair Tax would certainly make the tax burden more apparent, but what impact will a 23% (most likely much greater) sales tax have on the market?
You're statement indicates two points.
1. You are not aware the hidden taxes into the income tax are a far greater burden it the will be The Fair Tax. The income tax bracket most people fall into is 15 percent, and all wage earners pay 7.65 percent in payroll taxes. That’s 23 percent right there, without taking into account the 7.65 percent employer matching! On top of that, you have to add in the business taxes and associated compliance costs passed on to consumers in higher prices. The total is far greater than 30%.
Fair Tax FAQ #5
2. It is apparent you haven't thoroughly researched
Fair Tax Act Of 2007(HR25/S1025) . The effective rate (after the prebate) will lower the maximum 23% rate. The lower one's income the lower the effective rate. The poorest will not pay a tax. Also The Fair Tax will increase a person's purchasing power by putting more money in their paychecks due to abolishing all federal income taxes. I suggest you actually read the bill and visit the AFFT website before making anymore erroneous statements.
Man50D: “I suggest you actually read the bill and visit the AFFT website before making anymore erroneous statements.”
Nothing erroneous about wondering about the impact of a consumption tax on a consumption-based economy. As I wrote, Fair Tax advocates write as though it’s all about numbers. It’s anyone’s guess what the tax would actually do. I suppose someone could analyze Europe’s VAT for clues, but who can predict? Plus, I think Fair Tax fans are extremely naive to think politicians will give up the source of their power. Even if I liked it, and some parts I do, it’s just not going to happen.