[lewislynn]

"If you think the rent is inflated due to the landlord paying the income tax why don't you think it will be inflated due to the landlord paying the FairTax on his personal purchases?"

Oh brother. Another novel economic theory. Is there no end to the leaps of logic you will take to disparage the FairTax?

Assuming 100% rent income:

Rent before sales tax...$1000

$1000 minus 25%Income tax = $750 disposable (after tax) income

Playing your silly price game.

Rent after sales tax $1000 minus 25% (previous income tax) $750.00 (pre-tax gross income)

$750.00 plus new sales tax = $974.00

Remit 23% ($224.00) federal tax = $750.00

$750.00 minus 23% tax when spent = $577.50 disposable (after tax) income

Income tax = $750.00 after tax income

Fairtax = $577.50 after tax income.
A 23% ( no surprise) loss of after tax income.

Oh BTW, the total sales tax collected from $974.00 rent would be $396.50 OR 41% tax.

[Principled]

Better check your math again.

[4edm 4ever]

Lewislynn, in your math you forgot the final step. You said you would "play the silly price game" but then forgot that there would be no additional net tax on the final consumption. Your example shows the landlord reducing his rent by 25% pre-tax but prices on the goods going up by 23%.

In other words, if he had $750 after tax currently to spend, and 25% of the costs of his goods and services is the cost of the embedded system, his pre-tax FairTax costs for those same goods would only be $562.50 and his after tax cost approximately $732. He doesn't lose purchasing power in that example.

If you're going to use an assumption, you need to follow through on it.