[willyd]

A penny or two?...no try 23 pennys per dollar. That makes your real tax rate around 30% assuming you have a state sales tax.

[Zon]

Benefits of the FairTax

• No federal tax taken from your paycheck.
• No FICA taken from your paycheck
• Purchase necessities up to the poverty level tax-free. 
• Beyond poverty level spending total price paid at the cash register is virtually the same price paid today.
• Creates a flood of new businesses and jobs.

  Rep. Bill Archer, Chairman, House Ways and Means Committee:

  "A recent survey was done, in Europe and Japan, of the major corporations and I was astounded at the results. They were asked, 'If the US abolished its income tax and went to a sales tax, would that have any impact on your decisions?' Eighty percent of the corporations said they would build their factories in the United States of America. Twenty percent said they would move their international headquarters to the United States of America." 

• Abolishes the IRS
• No tax forms to fill out.
• No reporting your income to the government.
• You gain true financial freedom and financial privacy.
• Focuses people's attention on demanding government to cut spending.

The large influx of new jobs, among other things, means the current trade imbalance (deficit) will balance out and likely tip to USA advantage. In other words, a greater percentage of products and services will be made in USA, thereby foreign governments will see their tax receipts decrease.

In order for foreign governments to retain their present level of tax receipts they'll have to replace their outdated, economy-draining tax systems with a consumption based sales tax. 

The USA can lead the way to honest economic freedom and financial privacy the world over -- beginning with it's own citizens.

With outsourcing by American based companies, many of which are also building new manufacturing plants in foreign countries it would only deepen the trade deficit if a major first world country beats USA to the punch by implementing a consumption based sales tax first. That country would get the new jobs and USAs trade imbalance would widen.

It's not a matter of if consumption-based sales tax will gain dominance the world over, but when, and which country will lead the charge and which countries will play catch up.

The United States must take the lead.

That's the short list. For more information see fairtax.org  

[JennysCool]

I doubt VERY much it would take 23 cents on the dollar to equal what the feds presently rake in through the income tax.

[lewislynn]

A penny or two?...no try 23 pennys per dollar. That makes your real tax rate around 30% assuming you have a state sales tax.

Wrong again.

(b) Rate-

`(1) FOR 2007- In the calendar year 2007, the rate of tax is 23 percent of the gross payments for the taxable property or service.

Try 30 pennys on the "gross payment" including the state sales tax.

$1.00 + 7% state = $1.07 plus 30% federal = $1.39 (gross payment)

That makes your real sales tax rate around 39%

.23 X (of) $1.39 (gross payment) = $0.32 (or 32% federal "sales" tax)