Your math is wrong. It does not include the subtraction of the cost to the manufacturers and service providers of the taxes and compliance costs they absorb during the life cycle of the product. This was calculated by an umpeachable source at 23% on every dollar you currently spend (that is to say, you are already paying the Fair Tax, Congress just doesn’t want you to know that).
If the fair tax were an even scarier 30%, a $100 item at today’s price’s tax would not be taxed as $100*.3 for $130 as you submit, it would be taxed like this:
(100-(100*.3))*.3
100*.3 = $30
100-30 – $70
70*.3 = $21
The price of the item is then $91.
The only argument against that is the idea that the business person is just going to pocket that profit. They won’t be in business long.
Additionally, and importantly, the Fair Tax is a one time tax on new items, it is not a tax on used items and thus a great boon for those who need all their paycheck and a prebate just to get by.
Respectfully, sir.
