[Skenderbej]

I agree. Check the spending. 23% is ludicrous! $230 in taxes on a $1000 purchase. Why does the government need that much? $4600 on a $20,000 car? NO WAY!

[RayChuang88]

Except for one thing: since there are NO corporate income taxes, payroll taxes, etc. under FairTax, the cost of a US$1,000 item drops to US$770. As such, FairTax brings the price back to the original US$1,000.

I recommending reading this overview paper in PDF format to explain how FairTax works:

http://www.fairtax.org/PDF/FairTaxFAQ.pdf

[Willie Green]

I agree. Check the spending. 23% is ludicrous! $230 in taxes on a $1000 purchase. Why does the government need that much?

Actually, that's $230 on a $770 dollar purchase, ($1000 total purchase + tax.)

That's actually a 29.87% sales tax rate, but the hucksters utilize the more obscure "inclusive" method of calculation so they can deceive the public with the lower figure.

[PugetSoundSoldier]

I agree. Check the spending. 23% is ludicrous! $230 in taxes on a $1000 purchase. Why does the government need that much? $4600 on a $20,000 car? NO WAY!

If they ONLY got that much, we should be happy... Right now, the Federal Government is more than 27% of our entire economy. Federal tTaxation for most people - when you factor in FICA, SSI, your share of corporate taxes, capital gains, and of course income taxes - is very close to 30%.

For 2007, total AGI was $8.7 trillion; we can assume around $9 trillion this year. Total Federal Government receipts will be around $2.6 trillion, or around 29%.