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Re-read what I wrote and then re-read what you wrote.

I did. You wrote that the FairTax is not tied to the elimination of the income tax. It most certainly IS tied to it.

usually 15% long-term capital gains

The taxation of qualified plan withdrawals is NEVER as a capital gain. It is ALWAYS taxed at the ordinary income tax rate. That is basic. You should know that.

First I have an 8.25% sales tax rate which is over 1/3 of the 20% mentioned

That and the rest of your paragraph don't add up to 20% sales tax.

As for the rest, nobody believes the fairy tale about increased wages and reduced prices. Those two can't happen at the same time.

That is simply wrong. If there is no more witholding and no more payroll tax that means the employee will keep all of his paycheck. The employer no longer has to deal with compliance costs, pay his portion of payroll tax and no longer has to pay income tax. 10% lower prices is on the conservative side.

I did. You wrote that the FairTax is not tied to the elimination of the income tax. It most certainly IS tied to it.

No, it is not. There is no bond there. There is no obligation to repeal the 16th in the current legislation. There is a suggestion, maybe, but no obligation.

The taxation of qualified plan withdrawals is NEVER as a capital gain. It is ALWAYS taxed at the ordinary income tax rate. That is basic. You should know that.

True, that. For qualified plans the interest is taxed as income and is usually expected to be withdrawn at a lower rate than earnings, enjoying a lower tax rate under the current system.

The 15% would be for investments outside of retirement plans.

Sorry for my confusion. ;-)

That and the rest of your paragraph don't add up to 20% sales tax.

I didn't say it was a sales tax. I said that my local and state tax burden approaches 20%.

8.25 sales tax, 7-8 state income tax, 2.5 property tax, 2% misc which, at the very low end, add up to 19.75 (8.25+7+2.5+2) Real results are likely much higher.

And now you're telling me that what I save after all of that will again be taxed at 30% plus state and local burdens when I buy something after FT is implemented? Ain't gonna happen.

That is simply wrong...

Yeah, I've read the studies and the posts here. I agree that prices may fall somewhat and that most companies might let the employee keep their share of the tax burden, but the end result isn't going to be "purchasing power neutral" for the consumer.

Even if it was there are still losses incurred on any and all previously taxed savings.

And that's all before the government starts "fixing" the Fair Tax like they did the income tax.

The advocate's predictions are pie in the sky, at best.