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To: randog
"It would be a 30 percent sales tax on retail purchases. Since 30 cents is 23 percent of $1.30 (the amount you would pay on a $1 item), a 30 percent FairTax would cost you about 23 percent of your consumption."

But you haven't finished your explanation to the Average Joe. His "effective" rate is less than 23% because of the prebate, an amount that will vary from household to household, sufficient to offset the Fair Tax paid by the poor -- but everyone gets it. Even Donald Trump and Rush Limbaugh will get a check every month!

(If the Average Joe was smart he'd wonder why "the poor" need this prebate when "the poor" are paying 20-25% in hidden taxes today and are not getting a check to offset those taxes.)

26 posted on 01/20/2008 7:45:11 AM PST by robertpaulsen
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To: robertpaulsen
(If the Average Joe was smart he'd wonder why "the poor" need this prebate when "the poor" are paying 20-25% in hidden taxes today and are not getting a check to offset those taxes.)

And who the redistribution of tax burden will fall on to fund that redistribution of wealth.

30 posted on 01/20/2008 8:16:30 AM PST by Mojave
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To: robertpaulsen
Since you don't really lay out any specifics it's difficult to see what you're talking about but for the most part "the poor" don't pay that high a rate under the income tax presently.

The effective tax rate would typically be much lower for everyone under the FairTax than under the income tax and most would benefit greatly.

421 posted on 01/21/2008 7:40:32 PM PST by baybabe
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