It becomes revenue neutral because it encompasses all sales of new goods. Look at places like FL. They have dumped their income tax in favor of a sales tax and it is working very well.

After I read the books though I did look up alot of the arguements against it and in all honetly, they are as much speculation as the idea that business will not lower their prices.

I dont know exactly where my book are right now because my office is torn apart, but I should ahve it back together this weekend and I will have the charts for you. Basicly it comes down to amount of taxable income though. What most of the oposing charts dont mention is the dark economy or whatever Boortx called it. It is basicly all the illegal, untaxed funds that are spent in the US. There is also all of the tourist dollars that are spent in the US.

Think of your friendly neighborhood crack dealer. He makes 50K profit every year in illegal funds. We know he isnt paying taxes on income, but under the fairtax is he paying the 23% or 11500 a year on it.