[for-q-clinton]

Why does this article say the Fair Tax will be 30% tax rate? I thought it was more like 15%?

[justsaynomore]

It’s actually 23%.

Explanation here: http://www.fairtax.org/site/News2?news_iv_ctrl=1541&page=NewsArticle&id=8248

[Bigun]

Because the people who wrote the article are unwilling to compare their income tax rates to the Fairtax rate on a level playing field!

If you make $100,000.00 and pay $20.000.00 in taxes you would say that you payed a tax rate of 20%. When calculated the exact same way the fairtax rate is 23% and includes general revenue, social security and medicare. If I used the same method that they are using to calculate the fairtax rate in this article to calculate your income tax rate in the above example the rate would be 25% and that would be on top of your social security and medicare payroll taxes!

[Armando Guerra]

15% - 23% - 30% - whatever. All these arguments that it is too high actually make the argument in favor of the FairTax. The rate is set to be revenue neutral meaning you already pay that anyway. If you think it is too high you are right. However, that is not the fault of the FairTax. That is the cost of the government you have. To me the brilliance of it is the transparency. When people see the tax bill on everything they buy on a daily basis they will demand accountability. Taxes are a business cost and get passed on. Whether it is employer paid FICA tax or corporate income tax it is coming from somewhere in the form of depressed wages or higher prices. Progressives love taxes that can be hidden and people don't realize they are paying. I am all for people looking at their receipts and saying “that is too high.”

[lewislynn]

Why does this article say the Fair Tax will be 30% tax rate? I thought it was more like 15%?

The Fairtax rate is 23%.
23% is not the sales tax rate. 23% is the rate the business pays of their gross income.
For a business to break even they would have to collect 30% tax on their sales.

$100.00 sale + 30% tax = $130.00 gross.
23% of the gross (.23 X $130.00) = $30.00 (rounded)

Also this article fails to understand the prebate of the Fair Tax...where the poor (everyone for that matter) gets a check so that in effect all the stuff you buy for the essentials in a year aren’t taxed.

If the "prebate" is such a good idea they should at least double the amount.

Btw, what are my essentials and what do they cost me exactly?

Also, if Cain's plan is strutured the same as the Fairtax, the sales tax rate would have to be 9.9%...IOW, 10% more than everyone thinks it is.