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You gotta remember that 23% is only the marginal rate. Every American will recieve a rebate for taxes paid up to the poverty line. Let's say it's a retired couple. For a couple in 2004, it would be $18,620; that means that the couple would recieve enough taxes, $4,283, to pay enough taxes up to the poverty line. So, for this couple to pay at least 20% in taxes, they would have to spend AT LEAST $145,000 a year. ($145,000 - $18,620 = $126,380; $126,380 x .23 = $29,067.40; $29,067.40/$145,000 = 20.05%). Keep in mind that assumes ALL of their income is spent on taxable items (not used goods including a home, or savings), and it also assumes that the price of goods doesn't drop.

I know very few seniors who spend $145,000 a year.

I don't blame you for not looking at the marginal rate by not taking into account the "prebate" (Family Consumption Allowance). When I first came across the FairTax, I tohught the same thing. I'll give you a formula to figure out true tax rates:

First, the prebate is $9,310 for adults and $3,180 for children per year.

Use the following rules for the formula:

Income = I
Rebate = R
Tax Rate = T
Price Reduction (new price/old price) = P
Consumption Rate (% of income spent on taxable goods) = C

So,

(CTRIP)/I = Marginal Tax Rate

Glad to have you aboard on the FairTax.

Why are you calling the family consumption allowance a "prebate"? It's not a "prebate", it's not a rebate. It's a demogrant. Every man, woman, and child in the country would be entitled to a monthly check from the government regardless if they pay a penny in taxes. There would be a lot of people profitting from this system (getting more than they pay) and the ironic thing is, because the demogrant is tied to the tax rate, these people would actually profit more from a tax increase. You are giving a portion of the population to actually be in favor of tax increases.

It's the largest entitlement program in the history of this country. And I'm shocked that any true conservative would support it.