Wrong answer, wages are not the only thing that affect prices. You have the price of doing business ("corporate taxes"), supplies, materials, utilities, transportation, etc. on top of wages. Prices can drop due to reductions in the cost of any/all these items. The fair tax would eliminate the corporate taxes, which would also reduce the cost of all the items due to their corporate taxes, which are embedded into their prices, being eliminated.Corporate income taxes are not a "price of doing business." According to your logic, a company that lost money and therefore paid no taxes would have to raise their prices once they started turning a profit and paid corporate income taxes. Prices are set by the market equilibrium, not arbitrarily by the business.
Actually what I posted is exactly correct. The rebate is calculated by multiplying the poverty level times the inclusive FairTax rate. The FairTax at the poverty level is the poverty level times the exclusive rate.They would have to be very poor to approach an 5.4% effective rate under the FairTax....People consuming exactly at the poverty level will have a higher than 0% effective rate. It's closer to 4%.Not true, the prebate would cover that. Also, if they were shrewed enough in their buying they could actually make money from the prebate by paying less sales taxes than they get in the prebate.
You're not saying the poor shouldn't pay taxes, are you?