Today’s sales taxes are paid with after tax dollars. Hence a $10 item with $1.14 in sales tax requires that i earn [assuming a 21% effective total income tax rate] $12.66 for the item AND an additional $1.44 to pay the sales tax.
The sales tax [$1.14] has tax of .30 on it. That’s tax on tax. Get it now? That’s what so many ignoramouses have used as an excuse to reject the nrst. But the nrst does NOT tax sales taxes. Only the income tax does that.
To deduct sales tax, one must itemize. The number of filers that itemizes is about 1 in 4. Of the 1 of 4 that itemize, about 1 in 10 claim sales taxes. There are about 39 out of 40 filers who are paying tax on tax - giving the gov’t even more money to spend. Aren’t you for giving them less?
That is meaningless because it has not been established what your pay would be if the FairTax were passed. Boortz makes a case that money now deducted from your paycheck for taxes is not yours, but is your tax burden incurred from work that is assumed by your employer.
Once taxes are decoupled from work, there is no justification for your employer to pay the additional amount to compensate for the tax incurred. In other words, according to Boortz, your current take home pay could well remain the same after the FairTax as it was under the income tax. The difference is that under the income tax, the tax obligation is met for most wage earners through deductions, while under the FairTax your take home pay might well remain the same but your tax obligation has not been met.
The number of filers that itemizes is about 1 in 4.
When I have taken the standard deduction rather than itemize its because I pay less tax using the standard deduction.