Social Security taxes withheld from the employee check are matched and paid for by the employer. That amounts of 7.65% of payroll, and represents a $350 Billion savings to businesses if eliminated. That is the biggest savings businesses will see from the fair tax and amounts to about 3-4% of the costs of goods. In total, the fair tax will save businesses about 6-7% of costs to businesses, but then businesses will have to add a 30% to goods and services. The end result is prices will go up by 15% or more.
I wouldn't put it that way. Check out register totals will go up by 15% or more, but not prices. It's just semantic, I know, but if business can actually charge 30% in tax and still only have a 15% bump in the receipt total, then prices will have gone down.
In the end, the real question is how much of my money goes toward the things I want to own or to savings, vs. how much goes to Uncle Sam.
However, I would be in favor of any change in the tax system that doesn't leave the IRS able to treat me as guilty unless I can prove myself innocent. The current system is wrong on that basis alone.
Shalom.