All Blog Posts Tagged 'question' (2)

Marilyn,



Sec. 202 of HR25 creates a Sales Tax Bureau in the Dept. of the Treasury. The purpose of the bureau is coordination of the state administration of the federal sales tax. As you know, the states have all of the expertise in administering sales taxes, so the FairTax takes advantage of this by having the states collected the federal sales tax along with their state sales taxes. The states can do it much more efficiently using existing systems.



The IRS is…

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Question: I did some math. We believe that there is an embedded cost of 22% in the cost of everything that we buy. That means that by enacting the fair tax a $100 item would cost around $78. A Sales tax rate of 23% of that 78$ would leave the final price at $95.94. Thats a $4.06 drop in price even with the fair tax. Am I wrong?



This is an example used to explain the 23% tomato or 30% tomato. I did the math and here is the controversy. If you divide 77 dollars by 23 you get a round… Continue