When you compare the Fair Tax proposal with today’s sales tax, it’s still 30% no matter how you present it. Fair Tax people will say that of every dollar you spend, $0.23 goes to taxes. True, but then $0.23 is 30% of $0.77 which would have been the cost of the item without the tax.
The bottom line is, today in Austin, Texas I pay 8.5% sales tax which is 8 1/2 cents for an item that costs $1. With the Fair Tax, I would be paying $0.30 instead. To people who have been dealing with sales tax all their lives, that’s called 30%, not 23%.
The Fair Tax people know that a 30%+ sales tax cannot be sold to the American public even if it means the abolition of the IRS, that’s why they call it a 23% rate.
Wouldn't it be "in addition", not "instead"?
You lose right there.
Strike one: The FairTax cannot be compared with the sales taxes you pay today. The FairTax will be a FEDERAL tax, and will have no effect whatsoever on those state or local sales taxes you pay at present. ... it’s still 30% no matter how you present it.
Strike Two: It is 30% if it's figured one way, and 23% if figured another -- as has been show dozens of time before on this forum and on the Fair Tax web site.
I punched the button too soon above. But no problem, the rest of you post was a bunch of twisted stable sweeping anyhow, because the few FACTS that you have, you don’t know what to do with them to get the truth straight.
I suspect you will be paying $0.385 tax on your item. Texas is not going to give up their piece.