It will be tough for Congress to raise taxes once this goes into place.
You walk into a Walmart and buy 100 dollars worth of stuff.
You get a reciept showing what you bought.
On the bottom line of the reciept it shows how much you just paid in taxes.
This is way better than the current system of taxes taken from your check before you even see/touch your money.
It is a lot harder to back a tax hike under FairTax because all people (employed or not) are MUCH more aware of what they pay in taxes for obvious reasons.
You walk into a Walmart and buy 100 dollars worth of stuff. You get a reciept showing what you bought. On the bottom line of the reciept it shows how much you just paid in taxes. The same person who never looks at their check stub will throw away the receipt in the bag they carried it home in too.
23% tax inclusive = 29.87% sales tax. The (any) nst is NOT a sales tax but a tax "of the gross payment".
Your receipt:
$100.00 +
6% State sales tax= $100.00 + $6.00 = $106.00
$106.00 + 29.87% (23%) Federal sales tax = $106.00 + $31.66.
Total due for your $100.00 dollars worth of Chinese crap from Walmart:
$137.66
$137.66 minus 23% (gross payment tax)= $106.00
In the example given, your 23% sales tax is actually a 31.66% tax...37+% higher tax rate than promised. What else are they lying about?