[GeorgefromGeorgia]

Income taxes cause prices of goods to increase. Remove the income and FICA taxes and any increase due to the FairTax is significantly reduced. The key is that the FairTax goes after consumption not savings and productivity.

[Always Right]

Income taxes cause prices of goods to increase. Remove the income and FICA taxes and any increase due to the FairTax is significantly reduced.

They can only be passed to the consumer via price reductions if they are removed from the employees check in the form of wage reduction. Otherwise the savings are passed onto the employee and there is no reduction in cost of goods. Once the 30% sales tax is added, prices go up 30%. Taxes have to come from some place, but in the fairtax world of economics, they just appear from nowhere.

[Sprite518]

Bingo... Excellent point!