After recently purchasing a new car and paying 6 percent of the purchase price to the state of Florida ($2,184.08) and an additional $75 to my county, I drove home outraged about having to pay this sales tax. I took comfort, however, not only in the fact that Florida has no state income tax, but that at least I didn’t have to pay a national FairTax on the purchase price. That would have set me back an additional 30 percent ($10,920.40). Does anyone really think that the FairTax wouldn’t destroy the market for new goods? And please don’t try to tell us that it would all be a wash because prices of new cars would fall by $10,000 under a FairTax system. I have refuted that nonsense here.
Source link: http://archive.mises.org/8514/fairtax-folly-a-real-world-example/
FairTax Folly: A Real-World Example
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