How would you best answer the critic who poses the following: "Currently you say current retail pricing has approx. 22% federal taxes hidden in the cost of goods. You say, the Fairtax concept would strip out that 22% and adding a 30% retail sales tax at point of purchase only on new items. Now that 30% retail sales tax translates into a 23% of the old retail price."
Consider: Curently under present tax structure, in addition to the 22% federal taxes embedded in the retail price, the feds collected $1,059,858,091.00 in 2008 in personal income tax.
Question: If you're only increasing (in effect) the Federal embed tax of 22% by only an additional 1% (only making it transparant) and the personal income tax is eliminated. How can the Fairtax raise as much money as the present IRS system?
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