Quote:
Originally Posted by JJIII
See here...
Is the FairTax progressive? Do the rich pay more and the poor pay less as a percentage of their spending?
Absolutely, as you can see in Figure 6 below — where the graph shows annual expenditures for a family of four and the corresponding FairTax effective tax rates. The poor actually pay less than zero-percent retail sales tax on their spending. Much like with the earned income tax credit of today, the rebate may give them more money than they actually spend on retail taxes. Especially if they are frugal and buy mostly used products. On the other hand, the wealthy approach a maximum of 23-percent retail sales tax on their spending.
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The limits on the X-axis only goes to $96,000/year. As you can see in the graph I provided, people making over $200K/year will be the ones making the windfall. The folks making megabucks will be paying far less.