The fairtax taxes the "gross payment" A 7% state sales tax would also be taxed in the "gross payment".
$1.00 plus 7% state = $1.07 plus 29.87% "gross payment" tax = $1.39 or 39% total.
Making the "fairtax" 32% tax exclusive not 29.87%...
1. Employees take paycut in the amount of income tax.
2. 100% compliance with the sales tax.
Both of these assumptions are ridculous on their face. Contractual obligations that have been fiercely negotiated, just don't go away. 100% compliance, give me a break. Their experts are certifiably nuts.
No, looey, it doesn't ... and that has been pointed out to you definitively 800-900 times.
In your case we KNOW it's ignorance making you claim that. It does not tax state taxes. Read the bill.