The FairTax, Join in!

[Final-Fan]

(Simplified quote-nest)

Eomund said:

Final-Fan said:
Look, even SUPPOSING that there is a 22% "hidden tax" ON TOP OF the income tax etc., in that case how can you expect to replace it all with a 23% flat sales tax and come out with the government making the same amount of money?

22% tax + big income tax =/= 23% tax

Except if by magic.

This 22% hidden tax, as you correctly called it, is indeed on top of the income taxes. The 22% is embedded in the price of each item we buy. So we pay those taxes when we buy anything really. 

The FairTax would replace our current tax code lock, stock, and barrel. It has been researched and found that the 23% covers the revenue-neutral amount of tax, PLUS the Prebate, PLUS the bonus granted to the tax-collectors for their trouble (businesses and State governments). There is MORE money spent than earned through legitimate income sources. This extra taxbase will help cover the amount of tax being replaced. 

I don't understand how anything can make

22% "hidden tax (inclusive)" + "personal income tax, etc." = 23% "FairTax (inclusive)" [edit: corrected FlatTax to FairTax, thanks Eomund.]

into a true statement.  I just don't see how the math can possibly work out unless you say that the savings from a smaller IRS will equal almost the entire amount everyone pays in personal income tax and other taxes after also paying for prebate administrative fees.  Surely you don't make this latter claim?