How does the NRST provide for social security collection? That will be the DNC's attacking point on this I think. Is it a system where for every dollar you spend you put 1% in the piggy bank?
Under the FairTax, Social Security will operate exactly as it does today, except that its funds will come from the FairTax.
It is included in the NRST.
Good point.
The revenues needed for SS and medicare will be funded through sales tax revenues. In fact there are sales tax bills that do not include SS/MC and still withhold 15.3% for it. That's bad.
But by paying for SS/MC via sales tax revenue we get to eliminate all withholding - a good thing... even though it makes the rate go up 8%.
Take a look here.