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Final-Fan on 14 January 2008
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Andir said:
Final-Fan said:
one of my concerns about the FairTax is that is completely untested on any size and scope remotely close to what is proposed.
There are 6 states(?) according to the above post about 44 without income taxes. Would you feel more comfortable if all the states went to a percentage tax before the feds?
I believe that the highest state sales tax is California with 7.25% price-exclusive. The proposal is 30% price-exclusive which would be in California a total of 37.25% PLUS whatever it would take to compensate for all other California taxes.

In other words: what you suggest would provide good information but not be conclusive, as the federal taxes are much bigger than the state taxes. There is no large government I am aware of that gets virtually all its revenue from sales taxes or has a sales tax rate as high as what is proposed.

[edit:  Actually, if California went all-sales-tax, that would probably be the best example in the world to date.  California is a very large state with a large economy and large state government, so yes, if California did that and everything went swimmingly for a number of years I would feel much better about the FairTax.]



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