First, the fair tax book explains the percentage both ways. We are arguing over the same exact amount of money, so what is the difference. Secondly, if the embedded taxes are removed, the 100 dollar item will now cost 75 or whatever, then you’ll put that right back as a tax. Who do you think is paying the corporate payroll taxes now? I can promise you the stockholders arnt doing it out of the goodness of their hearts. its embedded in the budgeting for wages (making you get paid less) and in the price of the item.
Imports would pay the same tax rate as any other retail item. If their country has a bunch of taxes on their end, the import will be more expensive then an American made item. Thats my #1 reason for favoring this plan is it will give the US an edge in manufacturing to the biggest consumer, us.
According to you, they're paying now. 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%.