You're right. Then I still can't come up with a calculation that reconfirms the tax neutrality at 23%. I will continue to wait for someone to clear up the mystery.
I will continue to wait for someone to clear up the mystery.
This is what the revenue neutrality claim is based on:
Cato Institute Policy Analysis Calculating the NRST Tax Rate
The calculation must be made with respect to total consumption expenditures including foreign purchases in the United Stats not just expenditure of us citizens.
The FCA is taken into account as a reduction in tax base. Then percentage of consumption expenditure is calculated based on total dollars expended in the US economy(taxes + consumption) to yield the required tax revenue for neutrality.
Just adjust by proportions for the increase in GDP from 1995 to now to estimate the absolute revenue received in present terms.