The Fair Tax plan has never claimed to be a tax cut. Individuals, who are the only ones who pay taxes, will still pay the same amount of taxes, but at the register instead of a paycheck deduction.
The benefit comes from the elimination of the IRS. It also comes from the fact that companies do not have to waste precious productive time contemplating the tax implications of every business decision. This frees up time and money for new product development, purchases of equipment, hiring of more employees,and improvement of production and marketing techniques.
Individuals will see the embedded taxes disappear from the retail price, and be transferred to a sales tax. This means prices stay about where they are now. There is no tax on savings, capital gains, or the sale of used products. Additionally, now foreign citizens who shop in America will pay taxes. Participants in the underground economy, who pay no taxes, will be forced to pay them when they buy a loaf of bread, a new car, a dishwasher, etc.
So, prices remain the same, taxes remain the same, The IRS vanishes, and businesses free up time and money to improve their business. It's a winning deal for everyone.
Well put. Forgive my cliche abuse but so many here argue about trees and forget the forest
Do workers take home more pay AND get constant after-tax prices?
That question, after all central point of contention of this thread.