With the Fair Tax, you get:Fairtax fantasy or another Fairtax lie.
25.62% MORE spendable income.
$7,045.95 MORE purchasing power.
$7,304.68 LESS federal taxes.
Using your scenario on the Fairtax calculator YOU linked to:
under -"current"-the "true purchasing power" of $34,430 is 98% of the $35,430 "spendable income"
Under the phony Fairtax, even after injecting the $6,297 entitlement of someone elses money, the "true purchasing power" of $34,546 is only 75% of the grossly inflated handout of $46,297...
"Curently" by your own calculator, $40,000 gives me $34,546 "true purchasing power"
Under the phony Fairtax I have to have $46,297 (a 15% handout from the taxpayers) to gain $116 "true purchasing power"
Even after robbing their neighbor of over 6K their "true purchasing power" (Fairtax words not mine) only increased $116...where's the rest of the $6297 Einstein?
Oh my, another perennial bashing heckler of the FairTax surfaces.
Don’t know where you got your $35,530 ‘spendable income’ from. It does not show up on the FairTax calculator unless you add back in the hidden taxes and local sales tax. But then you would have to set local sales tax to zero percent and that would change the FairTax column as well. But most states have local sales taxes so a 0% assumption would be unrealistic.
I don’t get a ‘true purchasing power’ under the ‘Current’ column of $34,430. Accounting for:
Local sales taxes at 5% applied to 47.6% of ‘Net Spendable’ ($843.57)
and
hidden taxes (embedded federal taxes of 20%) applied to ‘Net Spendable’ of $35,430 ($7,086) the ‘true purchasing power’ under the ‘Current’ column is ‘Spendable Income’ $35,430 - $843.57 - $7,086 = $27,500.42. That’s the way economists define present purchasing power, income and wealth used for purchasing and free of all tax effects.
If you think a hidden tax level of 20% is too high, then you can change it by clicking the ‘Assumptions’ tab to the right of the ‘Results’ tab and enter a different value. It may be that some retailers will in certain product and service categories only experience a 8% decline in costs whereas in other categories it could be as high as 36%. On average it is 20%. But in all cases of a decrease greater than 0% in the pre-tax price of goods and services the FairTax increases the purchasing power of this example. Even 1% increases purchasing power by $314.25.
The $116 difference has nothing to with what you are looking at. The $34,546 true purchasing power under the FairTax comes from subtracting the NRST at 23% from the ‘Net Spendable’ and also subtracting the local sales tax. It has nothing to do with ‘Current’ system ‘Net Spendable’ plus $116.
Why do you call the refund or rebate of $6,297 an entitlement of someone else’s money? Whose money would that be? Who is it coming from?
If it is wealth distribution it must be coming from wealth, correct? So tell us where what who this wealth is confiscated from.
Can you? Nah! You can’t! Because it is coming from the purchases this family of 4 made from their Net Spendable up to the poverty line.
The family of this example will spend $46,297 on retail of which $10,648.31 will be for the FairTax NRST, yet they only received $6,297 in family rebate. So they are not receiving more rebate than they pay out to the NRST. You can’t say they are receiving ‘an entitlement of someone else’s money’.
So if the FairTax Rebate is such a massive socialist wealth distribution scheme, tell us who is taking in more rebate than they pay in NRST. Who? What segment of the population?
Waiting....tick tick tick