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We know you don’t know how to say it.

You don’t know accounting.

Well-known example of the missing dollar:

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Three men go on a hunting vacation to a hunting lodge and pay the lodge front desk clerk $10 dollar per room for a total $30. The clerk turns the $30 over to the owner of the lodge who remembers that he promised a $5 rebate. He orders the clerk to return $5 to the men. The clerk gives the $5 to the bellboy who goes to each of the rooms but before he knocks on the first room he ponders how to divide the $5 among the 3 men. He decides to give each man $1 and pocket the extra $2.

Later the clerk sees the hunters at which time they thank him for the $1 rebate. “Couldn’t ask for a better room at $9 a night!”.

The clerk seeks out the bellboy and in anger asks how much money did you keep for yourself???

The bellboy pulls out the $2 he pocketed and hands it to the clerk.

The clerk says “You are still keeping one dollar!!!”.

The bellboy asks “How do you figure that?”.

The clerk says “Each of the three men paid $9, that makes $27. You gave me $2, that makes $29. But when these three men came in they paid $10 each, that makes $30, not $29. There’s a dollar missing!”.
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Any competent accountant can straighten this type of nonsense out immediately.

Let’s look at your nonsense.

For our example of a married couple, two children, employed and filing jointly earning gross of $40,000, no deductions, no purchasing of used items (makes the FairTax result worse), paying $1,510 in federal income tax, assuming an average 20% reduction of pre-tax price in retail products and services, the results are given by the FairTax calculator:

http://www.fairtax.org/site/PageServer?pagename=calculator

When you refer to $46K, actually $46,217, you are referring to a level of spending to include the full NRST of $10,648.31. When the full NRST tax is subtracted from the $46,217, the result is $35,568.69.

Then the family receives a rebate of a portion of their NRST up to spending at the poverty level. The rebate is $6,297.

NOW NOTICE THE NEXT SENTENCE:

***The family spends the rebate on retail purchases and 23% of the $6,297 or $1,448.31 goes back to the government.***

Now let’s add up what went to actual consumption and what went as NRST taxes to the federal government.

Total spendable to family:

$40,000 + $6,297 = $46,297.

Total to government (NRST Taxes minus rebate):

$10,648.31 + 1,448.31 = $12,096.62

Net to family’s consumption (net spendable less NRST taxes)

$46,297 - $12,096.62 = $34,200.38.

Net to the government:

$12,096.62 - $6,297 = $5,799.62.

THEREFORE,

The family spent a total of $34,200.38 on consumption and $5,799.62 on NRST taxes. The total of these amounts is $40,000.

Another way to look at and more clearly see it is to view monthly amounts. I will leave that to you.

Returning to the hunting lodge example:

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The owner of the hunting lodge sees the clerk and the bellboy arguing. The owner steps in and explains how accounting is performed. “First you compute the goes-ins and then you compute the goes-outs. The goes-ins are $30 and the goes-outs are $5. The $5 goes out $1 to each guest and $2 to the bellboy. There is no missing dollar.

You should never use a net amount like $27 for the goes-ins!
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And you lewislynn should not blur consumption, taxes and rebates together and call it earnings!

Have a nice day or evening lewislynn. Hope you learned something!