EXACTLY!! I have been saying this for awhile!
It sounds great until you stop to think that its not the "only" tax we will be paying!
When you also consider that the state and federal government can raise these percentages at any time to whatever they want I think that we are in great danger.
For instance, After reading the fair tax book I came away believing that there was alot to it that would work but I kept thinking..."why would anyone buy something new when you could buy used and not pay sales tax?"
A new car would have this huge sales tax attached to it but a used one none. Same with everything! Even with more in my paycheck i'm still going to be budgeting because all in all its not a decrease, they are just shifting the burden. Therefore I will most likely never get to have nice new things because i won't be able to afford the taxes and settle for someones hand me downs.
Stop and think. There are plenty of reasons why people would buy new and not used - just as at present when we have used things that are cheaper than new. Some think that cars or houses have almost limitless economic lives and some think just the opposite.
there are even those right now who buy new cars every year or two (and new houses too for that matter). Some like "new" better because it's new and because they can affort to buy "new".
It's called "freedom of choice" and it's even more pronounded under the FairTax since your money isn't taxed "up-front" but only when you decide to spend it for taxable items. You decide whereas presently you're tax whether you buy new OR used.
You have to pay taxes on used cars and houses now.
Sheesh. Where to start?
Why did people pay $8000 for a HDTV or plasma TV when they first come out?
Why do people buy a new Mercedes when a new VW will get them to their destination?
There are those who want to the newest and the best and are willing to pay for it. That won't change with the FairTax.
Since 1986, there has been 10,000 changes to the Income Tax code. Do you really believe that those changes didn't result in higher taxes to some people (not to mention lower taxes as special favors to others)?
How do they sell tax changes now? By exempting YOU but charging ME the higher rate. Let's get the rich. It's divide and conquer. Under this plan, EVERYBODY pays the same rate. Will you want to raise my taxes when it means that yours will go up as well. As much bitching as the libs do about higher taxes, they always pay the lowest amount possible too.
Do yourself a favor and read the bill and the FAQs. This plan will do wonders for the economy and for liberty. And it will lead to lower government spending.