"I can't imagine this plan being good for people on fixed incomes who will not have the added purchasing power from the eliminate Payroll Taxes, but will have to be faced with paying more for goods and services."
There is a lot about the FairTax that you can't envision, based on your posting history. People living on fixed incomes are, for the most part living on low incomes. Regardless of what the sales tax rate turns out to be, all their sales taxes up to the poverty level would be tax-free due to the rebate. That means if prices ONLY decline by 10%, then they would see a 10% increase in their purchasing power up to the poverty level. That sure seems like a benefit to me.
Of course, we will leave alone for now the debate over the magnitude of the price decline. Dr. Jorgenson says 22%, AR says 10%.
If that's such a good idea,why don't you raise the "rebate" to a level the middle class are untaxed too?...imagine what that would do to the economy.
The truth is the "rebate" is a huge transfer of wealth (at least 19%) tax increase and NOT a windfall for the poor from a money tree...
Of course, we will leave alone for now the debate over the magnitude of the price decline. Dr. Jorgenson says 22%, AR says 10%.
What is AR?
The fairtax rate is tied to the GDP. a 22% drop in GDP would only mean a tax increase...and they wouldn't even have to vote for it. They've already authorized the bureaucrats at Social Security to do that on their own, as they see fit.