Huckleberry's 23% tax is actually a 30% tax

[jj111]

Huckleberry's 23% tax is actually a 30% tax

The so-called "Fair Tax" is fraudulently sold to the public as a "23% tax" when in fact it is a 30% sales tax.

The way they derive the fraudulent 23% figure is as follows:

$1.00 item
$0.30 tax
.....................
$1.30 total amount consumer pays.

Then, through fraudulent use of misleading math, they take the $0.30 tax and divide it by $1.30, which is the total amount the consumer pays.

If you divide $0.30 by $1.30 you will get the fraudulent figure 23%.

So in fact, what they are proposing is a 30% national sales tax.

Oh, and by the way, add to that your county and state sales tax if you live in a state that has sales tax.

In San Francisco the sales tax is about 8.5%, add to that a national sales tax of 30%, and you get a total sales tax of 38.5%.

Pretty "fair" tax, isn't it?

[jj111]

Can you imagine the amount of black market activity that would spring up in response to a 38.5% sales tax? And can you imagine the cost to the government in hiring bureaucrats, judges, enforcement agents, lawyers, accountants, jails, etc. to deal with tracking and punishing those in the black market? I think the needed bureacracy would probably be bigger than the current IRS.

[FireofLiberty]

Different studies on The Fair Tax have come up with all kinds of different rates.

[FireofLiberty]

Can you imagine the amount of black market activity that would spring up in response to a 38.5% sales tax? And can you imagine the cost to the government in hiring bureaucrats, judges, enforcement agents, lawyers, jails, etc. to deal with addressing the black market?

Actually, the black market is far worse under the current system. The Fair Tax would probably go a long way to rein in it, but not completely. There will never be a tax system without a black market. Other than of course no tax system.