Max, the 23% rate is expressed in the same manner as the current federal income tax. I see no problem with changing to the 30% number if you in the government would be willing to do the same and express current federal taxes on the same basis.
You say you have doubts about the embedded taxes. In the 1980′s Roger Smith, then head of GM, testified before a congressional committee that if the embedded taxes were removed he could sell a $4,300 (1980′s prices) Chevy for $2,700. It has only gotten worse.
The FairTax rate is achieved by broadening the tax base, beginning with the $300 Billion in taxes due each year that the IRS admits it will not collect. An entire society exists in this country of people who work only for cash. This group are not only involved in illegal activities but also in businesses like handyman, common laborer, etc. These people pay no taxes today but they do spend that income and would be paying taxes on it. In addition the 50 million tourists who visit us each year would be paying the tax.
The World is flat as Kenneth Friedman wrote and is getting flatter. So long as the United State continues to tax productivity this country will never be able to compete globally. So if you want this country to continue the success we have had in the past changes must be made, even if some small groups do not benefit as much in the short term.
