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It’s like Rep. John Linder said, “ pay 35%+ when you earn it or 22% when you spend it “ . I’d much rather pay the 22% on purchases, as would most people .

Isn’t there also a prebate on neccessities for everyone ?

Isn’t there also a prebate on neccessities for everyone ?

All valid Social Security cardholders who are U.S. residents receive a monthly rebate equivalent to the FairTax paid on essential goods and services, also known as the poverty level expenditures. Fair Tax FAQ #3 but keep in mind the prebate for the wealthiest people will be such a small percentage compared to their income that their effective tax rate(after the prebate) will still be close to the maximum 23% .

“pay 35%+ when you earn it or 22% when you spend it“

I can't argue the fact that, taken at face value, this looks real good for those in the 35% bracket. Those in the 15% bracket, on the other hand, ...

"Isn’t there also a prebate on neccessities for everyone?"

Bill Gates might argue that.

The prebate is equal to the Fair Tax rate times the poverty income level. Since those who are at or below the poverty rate spend most of their money on necessities, the prebate is being touted as a way for the poor not to pay taxes. Though everyone gets it.

Now, prices today contain hidden taxes that the Fair Tax replaces. The poor are paying these hidden taxes today and not getting rebated or prebated today. Why the sudden compassion?