[kevkrom]

Cascading effects of income and payroll taxes (including complaince costs, higher interest rates, et. al.) add 20-25% to the price of goods and services already. Removing those costs will lower the prices of goods and services (assuming anything even remotely resembling a competitive market).

Additionally, the FairTax has something called the Family Consumption Allowance (FCA), which provides every legal resident of the U.S. with a "rebate" equal to the poverty line (subsistence spending) times the tax rate, paid monthly. This essentially untaxes subsistence level spending.

If you spend only up to the poverty line, your effective tax rate is 0%. If you spend double the poverty line, your effective tax rate is half of the NRST (FairTax) rate. and so on.

[kevkrom]

FairTax/NRST ping

[lewislynn]

Cascading effects of income and payroll taxes (including complaince costs, higher interest rates, et. al.) add 20-25% to the price of goods and services already.

In other words employers would retain payroll taxes from the employee as a trade off for lower before tax prices only to be increased by 30% sales tax...

20% before tax reduction plus 30% sales tax =

Employee = Huge money loser in the end.

Employer and government = Huge money winner.