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Try to understand the difference between an inclusive tax and and exclusive tax. I knew this was what you were going to present and it is thoroughly discounted in #47 of link you provide. Read it and try to understand the math. Clearly, you don't undestand the difference between an inclusive tax and an exclusive tax. This is where your misunderstanding lies. You really don't look too intelligent when you namecall when it is you who is confused.

I do understand it. Show me where I have made an erroneous statement. In post 135, you said the sales tax on a $100 item would add $23 to the item. If you still don't get it will be a $130 item after tax is added, then you are the one with the misunderstanding. And please don't confuse your ignorance with me lying. You have no idea what you are talking about. You really don't look intelligent when you namecall when it is YOU who do not understand it.

BTW, Wikipedia is a very questionable reference.

FairTax on Wikipedia offers a perfectly clear and accurate explaination of what is going on. Perhaps you should read and understand it, it would help. However, even the fairtax admits it is a 30% sales tax in the traditional concept, so whether Wikipedia is 'questionable' is mute. Fairtax.org says they convert it to an inclusive rate of 23% for comparison purposes to how income tax is calculated, but it serves to mislead lots of people, including you to believing it is a lower rate. It is a 30% sales tax as all states implement sales tax today and how virtually all people understand sales tax rates.

I do understand it. Show me where I have made an erroneous statement.

Happy to show you the error of your ways.

You are comparing prices of an item with inclusive taxes, that being as they are now, to an item after the FairTax would be implemented. Items sold under the current system have these hidden, embedded taxes added into the price. These taxes are paid by the manufacturer and or suppliers to the manufacturer of the goods and are passed along to the consumer. This is also why corporate taxes are such a farce. Corporations do not pay taxes. Corporations collect taxes. All taxes, regardless of what they are called, are ultimately paid by the end consumer. That'd be you and me.

Under the FairTax, these embedded taxes, and the cost to comply with them disappear, thus lowering the cost of the item prior to the point of sale. By direct comparison of $100 items before and after the implementation of the FairTax without reflecting the reduction in the price of an item caused by embedded taxes your argument would be correct. However, you are comparing apples to oranges because you did not reduce the cost of the item by the amount of the embedded taxes (and compliance costs) prior to making your comparison.

When the FairTax is adopted, the inclusive taxes, aka embedded taxes (and the costs to comply with the current tax system) won't be there for the most part. These include, but are not limited to, Social (in)Security matching funds, Medicare, compliance costs paid by the manufacturer to comply with the current tax system, corporate taxes, etc. So, an item that costs $100 now under the current tax system at the point of sale would cost roughly $77, or %23 less than they do now at the point of sale, then the FairTax is applied. Add 23% to $77 and you get $94.71, not $130. So, an item that costs $100 now with the inclusive taxes at the point of sale would be $94.71 under the FairTax because of the reduction of the embedded taxes before the NRST is added at the point of sale. This makes the FairTax exclusive to the item because it is not added until the item is sold, thus these taxes are not embedded in the price of the item. An item that costs $100 under the FairTax, i.e., after the embedded taxes and compliance costs are removed, would have $23 in tax added to the price of the item at the point of sale, making the final cost after the FairTax is added $123, not $130.