FairTax legislation proposes a 23% rate.
HST, keep in mind that by removing the tax cost of government FRom goods and services, over time, the retail price of goods and services will decline by roughly 20%.
The after tax cost of new goods and services under the FairTax will be roughly the same as it is under the income tax. If your after-tax market basket of goods costs you $100.00 today, under the FairTax, that same market basket of goods will cost roughly $100.00, tax inclusive.
But, each consumer will have FReedom of choice in respect of how much tax they will pay, and when.
I don’t see what difference it makes if you get that 23% through 4 stages of production each time someone sells to someone else. JMHO.
There is no law that says you MUST have an income tax if you have a VAT. That is no more true than saying you MUST have an income tax if you also have a sales tax.
The income tax is what I want to get rid of. And property taxes. I hate those, too. Something should be taxed once, and then it should belong to you. Period.