Quote:The best way that I can describe it is this.  Say you decide to buy a new TV, and it costs $200 (just a round number to keep things simple).  Say the Fair Tax Rate is at 20% (again using simple numbers).  Your total cost for that TV is going to be $240.

 

Now say that a "rich" person wants to buy the same TV.  The cost to them would be $240.

 

Now again say that a person that is a lower income earner saved up some money and decided to buy the same TV.  Guess what the final cost is?  $240.

 

In this case, three people from three different income levels pay the same amount of tax.  That's what I call "fair".

 

Now a "rich" person might want to buy a $45,000 car.  That person would pay 20% tax on the price of that car which would make the final price $54,000.  Now look at a "middle class/income" person buying a car.  If they choose to buy the same car, then they would pay the same tax on that car (20%) and the final price would be... guess what?  The same.

 

Here is what one of the beauties of The Fair Tax is.  It would only apply to purchases of new stuff.  So if the middle class person decides to buy a used vehicle that costs say $30,000, then that's all that they pay.  There is no tax added to the purchase.

 

Think about this for a moment.  Would a "rich" person buy "used" stuff?