Would the FairTax of 23% on a dollar be added to NYS tax of 7.25%, with a total of about $.30/dollar, yikes?

Answer 1

This is true. One is the State tax (7.25%0 and the other is the federal tax (23%).

Now consider this. When you go to the store to buy a microwave for $100, how much federal taxes are you paying? Economists have researched this question on a variety of products and the answer is anywhere from 19% to 26%! for a combined federal taxes and tax compliance costs.
The overall average is between 22-23%.

If you also consider as an individual wage earner you are paying 7.65% SS tax and Medicare taxes as well as somewhere between 15 to 28% federal income tax. This means RIGHT NOW you are paying somewhere between (22-23% embedded costs plus 7.65% plus 15%) 43.65% and 56.65% in federal taxes each year! This is under the current income tax system.

With the FairTax, you would pay the 23% sales tax only on new goods and services. If you buy used goods (clothes, cars, homes etc there would be NO federal taxes! You have control on how much federal taxes you pay based upon HOW YOU SPEND your money. You are not dictated what you will pay by the Politicians. Your overall tax rate could be ZERO when you factor in the Prebate. This is the amount of federal taxes you would pay up to the poverty level that gets sent to you each month!

I feel the FairTax is a much better tax system.

Answer 2

Yup. And 23% is probably a lowball figure.