Alas.
The Real Rate IS Outrageous.
Independent scorings put it in the Mid 50s% Range.
Not including you have to add in State Sales taxes averaging 6%.. and convert state Income Taxes to Sales taxes too to make the thing worth doing.
So we're talking in the Mid-60s% Range at least.
And many don't know even to achieve their Lying rate of "23% inclusive" (which is 30% the way you and I know a Sales tax is calculated now), they Tax EVERYTHING.
Government buys a Jet, Tank? 30%
Unlike State Taxes... Little things like New
HOUSES are Taxed.
How about Taxing
RENT 30%-60%? Yes RENT is taxed.
Anyone live in NY, Boston, SF, LA, gonna afford that?
Who's going to be able to save for a taxed House if they get Creamed on Rent?
Prescriptions, Health Insurance, (car insurance etc) Medical procedures.
Yup Heart/Kidney Transplant-- Whammo.
FOOD.
Everything.
And I know who'll pay less.
Buffett, Eisner, Head of Goldman Sachs, etc who now pay a 35% tax on Income (and 15-35% on Short gains, Capital Gains, Dividends, Estate, etc).
ALL Gone.
The very wealthy, now only have to pay 23/30% on what they spend.. which is a hell of alot less than 35% on what they make!
In fact (and Obviously) the more you make the lower the Percent of your income you spend to live.
So since Fairtax claims to be "Revenue Neutral".. and the Rich Definitely pay less... WHO Pays more?
Fairtax is complete Fraud and a Joke of one too.
Unsurprisingly created by 2 Texas Billionaires.
By the math.. not even a serious proposal and would never get past hearings that would destroy it.
Extra - WSJ.com
And of course, evasion would go through the Roof forcing the rate yet higher, IMO, more like 100% all told (Fed, State/local sales/income, etc)
Everyone goes cash and barter- the economy goes underground to avoid this HUGE tax.
An incentive for Evasion approaching that of Drug Profits.
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