Fairytax's "23%" is actually "23% tax inclusive".. which is really 30% (exclusive) the way everyone else on the planet calculates it.
A $100 item will cost $130. Fairytax calls that "23%" tax inclusive.
Which "is just the beginning of it's problems".
It has it's own bureaucracy figuring and giving out prebates. And of course since everyone in the country now has the greatest incentive in history to become scofflaws (and everyone a tax collector), there would be a huge enforcement staff needed to stop the BLACK/cash economy that would result from a 65% sales tax (Fed + State) that would be needed.
And Independent scoring of Fairytax's even claimed 30% rate is more in the mid 50's% range. (not including state sales taxes, or state income taxes... all of which would have to be converted to sales tax from income tax to make the system even debatable)
http://www.debatepolitics.com/genera...post1058609584 (Sales Tax vs Income tax vs Asset Tax)
http://www.debatepolitics.com/genera...post1058609429 (Sales Tax vs Income tax vs Asset Tax)
Another Basic problem being being you just can't reduce the upper 1%'s taxes by 90% without making someone else pay. see http://www.debatepolitics.com/genera...post1058609429 (Sales Tax vs Income tax vs Asset Tax)
It's grotesquely regressive.
To cloak this obvious scam they give a prebate which is supposed to take care of the lower incomes, but of course it doesn't.. especially at the real rate.