FairTax: YOUR Effective Tax Rate

Interested in knowing what YOU will pay in annual taxes under the FairTax? Well, take a long, hard look at either of the two charts below. The upper chart is for Married Couples and the lower chart is for Single Adults.

Your Effective FairTax Rate - MARRIED


[Click on each chart to view full size]

Your Effective FairTax Rate - SINGLE

There are a number of different ways that these charts can be used, but #1 should be to determine what YOU will pay in annual taxes under the FairTax. Another use could be to educate others on what they will pay in annual FairTax taxes.  I hope others will educate me on ways that they will use these charts by leaving comments.

This is the time to contact your Congressmen and Senators to let them know you support the FairTax.

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Posted in Calculator, Class Warfare, FairTax, Prebate
12 comments on “FairTax: YOUR Effective Tax Rate
  1. kicker51 says:

    Do you have a better link. When I download the charts, they loose too much detail when expanded to viewing size.

    • Bill E. Payne says:

      Click on each chart in this blog, which will open it bigger; hover over the new chart, and if there’s a + sign, click on it again. Then download. Should be real good, Steve. If you download the chart that’s on this page without opening it full size, it won’t be real good.

  2. Bill E. Payne says:

    Great charts! Click on each chart to open it full-size.

  3. David Boone says:

    The Williams Effective FT Charts (WEFTC) are not just pretty lines on a graph, but they are functional as well. So now that we have an easy way to see what our effective rate would be under the FairTax, let’s take it to the next level and calculate what the effective tax would be under the income tax. Take out your 1040s from 2010 and divide line 60 by line 22. Add that percentage to 7.65 or 15.3% for payroll taxes. I ran an example using $44,761 on line 22, $2939 on line 60, giving 6.56%. When added to 7.65% equals 14.2%. The married couple (one child) graph gives a 9.7% effective rate under the FairTax.

    The beauty of working from real 1040s is that it makes the calculation personal and private, and it gets away from the generalization “spaghetti”.

  4. David Boone says:

    The ultimate significance of this little fun exercise is that it quantifies the whole progressive/regressive argument. If someone argues that the FairTax rewards the rich at the expense of the poor or the middle class, we can say, here are our numbers, where are yours?

  5. This is wonderful!
    Please do not miss the horizontal red line at the top. It is the tax rate paid by non-US citizens.

  6. David Boone says:

    Consumption is earnings minus savings. Simple as that. Given that the savings rate is so low in this country, we can take earnings to be consumption for probably 9 out of 10 of us.

  7. I’m currently a college student and studying the fair tax act, I don’t know all the ins and outs of it yet, but It sounds like a positive thing to me to bring home more on my weekly pay check. I definitely like the idea of not having to pay taxes on used merchandise, but I guess as far as the “fairness” of the act, that would depend on your spending habits. The charts are interesting, but I have to agree with D Boone, the lack of savings in the country right now is staggeringly low.

  8. The Charts are pretty good, although there is a slight problem where it says non-citizen pay 23%. In reality, legal resident aliens would also qualify for the fairtax rebate that untaxes poverty level consumption.

    There are two group of people that would not qualify
    1. illegal aliens; and
    2. individuals institutionalized for more then 6 months.

    The fairtax rebate is meant to untax poverty level spending and eliminate any need for politicians to complicate the tax code with a myriad of exceptions for consumption of various items to lower the burden of taxes on the poor. The fairtax rebate completely untaxes those living in poverty and progressively ones effective tax rate grows the more opulently he lives. But the fairtax also promotes adherence to the law because it becomes a carrot for illegals to go home and come over legally.

    • Thanks for commenting, Keith. You’re correct that legal resident aliens can also qualify for the prebate; but I do believe there is a third group that does not qualify: tourists.

      I used the term “non-US-citizens” for lack of a concise term that encapsulates Illegal Immigrants, those incarcerated for 6+ months, and tourists. I have made a note to better explain that in the next revision.

      Thank you, also, for the great explanation of the prebate. I haven’t seen it explained that way; and that explains it perfectly.

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