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The difference is the amount of total tax paid. Most people fall into a 15% income tax bracket. Also wage earners pay 7.65 percent in payroll taxes. That’s 23 percent right there. Also add in the 7.65 percent employer matching. That's 30%. Then factor in the business taxes and associated compliance costs (23%) passed on to consumers. The grand total exceeds 50%! Fair Tax FAQ #5 The total tax burden will be far less with The Fair Tax.

I fall in the 28% or 33% bracket. Do you really believe I'm going to get to keep all of that? I think you are incorrect in claiming the 15% marginal rate (or my 28% rate) is "embedded" in prices. It is taken from my gross earnings. As I said earlier, the only way that becomes "unembedded" is for my employer to slash my gross compensation. If that happens, there will be two weeks notice followed by a vacancy. I suspect most of my colleagues with similar compensation would have the same reaction. At my company, the only real "asset" is the intellectual capacity of the employees. The buildings and furniture don't earn income from the customers. It would be a really big mistake to try to slash incomes.

I fall in the 28% or 33% bracket. Do you really believe I'm going to get to keep all of that?

This statement is irrelevant since there will be no income tax brackets because there will be no income tax! What part of The Fair Tax will replace income taxes don't you understand?

I think you are incorrect in claiming the 15% marginal rate (or my 28% rate) is "embedded" in prices.

You're not paying attention. I never stated embedded taxes totals 15%. I did state in a previous post to you the amount of embedded taxes in every good or service is slightly less than the 23% that will be imposed by The Fair Tax.

As I said earlier, the only way that becomes "unembedded" is for my employer to slash my gross compensation.

Individual taxes are not embedded in prices of goods and services. Only corporate income taxes are embedded. Embedded corporate income taxes will not remain embedded since The Fair Tax will eliminate all income taxes for individuals and corporations!

The buildings and furniture don't earn income from the customers.

You're still not understanding the concept. The costs of all the materials used to construct the buildings and furniture included embedded corporate taxes at each stage of production by all the manufacturers who consider those taxes as costs and include those tax costs in the price of their materials . Whoever bought the buildings and furniture were in effect taxed multiple times. The Fair Tax will remove all corporate income taxes at each stage of production and only tax the purchasers once at the final stage when they buy the buildings or furniture.

It would be a really big mistake to try to slash incomes.

I agree! That's precisely what happens with the federal income tax! The Fair Tax will boost incomes by removing federal income taxes on people's wages. They will have more money in their paychecks!