[Always Right]

I'd prefer a higher NRST rate to keeping the payroll tax.

Don't worry the NRST is already higher, the advertized rate of 23% inclusive, is really a 30% tax on your goods and services. If you bought a new $300,000 house, you would have to pay an extra $90,000 in taxes. The mortgage exemption is no big deal, but the 30% sales tax (which they twist and say is 23%) is a big deal.

[Remember_Salamis]

If you really wanted to compare it to income, you'd use the 23% rate (inclusive vs. inclusive).

[Remember_Salamis]

OK. If you want to play the numbers game, here's this one. Let's say this person makes $5,000 a month. Of that $5,000, this person pays $765 in payroll taxes and $500 in federal taxes (at an extremely low 10% tax rate just to prove how much better the fairtax is). That makes for $1,265 in taxes every month, or a 25.3% marginal rate. If you want to make that tax-exclusive, that would be 33.6%. If this person had a more realistic income tax of 20%, these numbers would be 35.3% tax-inclusive and over 54% tax-exclusive. So you tell me, which way is cheaper??? Oh, and by the way, a used house is tax free.