[lewislynn]

BTW, in your #1 example you give them way too much credit. The rate wouldn't be 37% it would be 39%.

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%...

[Always Right]

The more I learn about their techniques, the more I can't believe any economist with any creditentials would sign up for any of this. To make their analysis work this is what the assume:

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.

[pigdog]

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.