The FairTax, Join in!

[Eomund]

Final-Fan said:

I don't understand how anything can make

22% "hidden tax (inclusive)" + "personal income tax, etc." = 23% "FlatTax (inclusive)"

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?

 Just a clarification the underlined part should be FairTax (inclusive).

Now to the point. Please forgive me as I do not remember the website that I got some of these numbers for, I changed computers so I don't have the history to look up.

Of the ~$2.6 trillion tax collected (a recent year but I don't recall right now... i will get the data soon though) only 965 billion, or 37.1%, was from Income taxes. That is a sizeable amount but not insurmountable. Using simple math (I will not claim to know how the economists that came up with the FairTax calculated it) in order for the FairTax to be Revenue Neutral it must be applied to $11.3 Trillion of sales. That doesn't seem unreachable either. The US economy moving $11.3 trillion in Sales of New items and Services (Note: Services do not have to be "new" to be taxed [hope I don't get in trouble for this, but I wonder if prostitutes were to pay the FairTax, would they be classified under a service or a used item... just wondering as I never plan and requesting their assistance]) doesn't sound outlandish to me. 

Now I say all this without backup of numbers at the moment because I can't find the data at the moment, and for the expediency of this post I will try to find it now.