Quote:
Originally Posted by Benjamin
The idea isn't horrible, but 23% is way too much for a student such as myself. I don't make enough to file a 1040, and I'd be hit hard by the fair tax. If it were say, another 10% added, I could deal with that.
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Problem is, you already pay that 23% through the many federal income taxes besides the one your familiar with. PLUS, all the corporate taxes are passed down to you as well as cost of compliance. We call these embedded taxes, and they make up about 30% of the cost of an item. So, were the fair tax passed, these costs would be eliminated causing prices to fall. PLUS, you get your entire paycheck, no taxes taken out. WHich returns to you an immediate 10-30% more income.