I cannot claim to be an expert om the FairTax.
May I just ask you this...
If one man is single, has no children and makes $75,000 a year... will he pay more, less or equal taxes to a man who has a wife & 2 children who makes the same amount?
Thanks.
No worries KarenMarie.
Your question cannot be answered as written b/c the nrst is not based on what you earn. It is based on what you spend.
The single guy will pay the nrst after appx $10,000 of tax free spending per year. How much he ends up paying depends on how much taxable stuff he buys. His max tax would be $14950 if he spent everything on taxables.
The family will pay the nrst after appz $17000 in tax free spending per year. How much this family ends up paying depends on how much taxable stuff they buy. Their max tax would be $13340 if they spend everything on taxables.
The family has higher necessity spending so they have a higher threshold to cross before they pay. Of course, there are a lot of things that will reduce the amounts. You can take a look here http://fairtaxcalculator.org/ for more complete information.
Well, I’m guilty of FWGC. Freeping w/ granchildren.
So my last post is hard to follow and I may have misread your question.
The answers I gave applied to a single man w/ two kids. A married couple w/ two kids spends appx $27000 tax free. So this married fam of four would pay max of $11040 if they spend everything they earned on taxables.