Quote Originally Posted by SniperJoe
BTLFED Notes on the FairTax:

Because of the system we have in place right now, everything is (on average) 23% more expensive than it should be. This is the cost of the accountants, embedded taxes and everything else that companies pay. (i.e. If a car costs you $10,000, $2,300 of that is going to the IRS, CPAs and other embedded costs of the tax system.) You also pay income taxes, Social Security taxes and Medicare taxes. The FairTax would take the income taxes, Social Security taxes and Medicare taxes away and add in a 23% inclusive sales tax on items. So instead of having taxes taken away in your paycheck before you see it, they would be taken out when you buy things. Prices would also drop 23% due the companies no longer having to pay the costs of the system and other taxes.

In a REAL nutshell:
You would now get all of your paycheck and item costs would stay the same.

yeeeeeees sounds good, but is there qa bad side to it? kind of sounds to good to be true.


so you would buy a xbox 360 and pay..250$ for it instead of 300$, and pay 23% on the 250$? but you wouldnt come out the ass in taxes with ur paycheck? Would the government just collect all their taxes thru the 23% tax on the merchandise? How would u colect your social security?