I don't believe anyone cares about terms for comparing NRST and income taxes. I think people care about what actually comes out of their pockets when they purchase an item.
Tell me, if the NRST is implemented and I buy an item that costs $100, how much actually comes out of my pocket to pay for the item, about $123 or about $130?
Neither. A $100 price tag item in the store costs you $100 at the register (plus your local/state sales tax). Because as I have said several times, the tax is INCLUSIVE!
Why do you care what the price is if you have extra cash in your pocket to pay for the thing you want?
If an NRST is applied and prices have reached equilibrium (meaning costs have come down), you may pay $116 for an item that previously cost $100. You may pay $120 or $130. But what does it matter of you are getting an extra amount in your pocket to compensate for the increase in pricing? (if there is an increase in pricing)
The FairTax is not about avoiding taxes. It’s about getting the KGB IRS out of our lives. It’s about alot of other things too.
For example, if American corporations are no longer obligated to pay corporate income tax because there will be an NRST on finished products, then they will become inmediately competitive overseas where an NRST is not applied. No more corporate income taxes means corporations can sell their products in foreign markets for less and therefore they will be more competitive. This aspect of the FairTax alone will help revive American manufacturing.
So forget how much comes out of your pocket on a purchase (except in routine decision making for the purchase) and start thinking how much goes into your pockets because of the FairTax.
Again you’re not going to avoid tax..
but you will see upfront how much the tax is on purchases because right now under the ‘Income’ tax you can’t see the level of tax on your purchases,
and you will have no papers to file with the KGB IRS, and they won’t be able to coerce you into penalties and interest on unpaid taxes that your accountant said and still says you don’t owe,
and people will start to do something that previous generations used to do on a regular basis, something so basic that they would never have given it a second thought...
SAVE.