John Rice Carter: “I thank the gentleman for bringing up some great points. Mr. Speaker, I want to very quickly go over a couple of myths…”

“I thank the gentleman for bringing up some great points. Mr. Speaker, I want to very quickly go over a couple of myths, if you will. I know you find it hard to believe, but there are some myths out there about the FairTax Act. First of all, the myth is that the FairTax Act rate is really 30 percent, not 23 percent. I agree. Twenty-three percent is too high. We wish it could be lower, but it is not 30 percent. Our current income tax as expressed is an inclusive tax. When directly comparing the FairTax Act to our current income tax, the FairTax Act rate is 23 percent. Under the FairTax Act, if you would pay $100--this is simple math, now--if you pay $100 for a good, $77 goes for the good, and there is an inclusive $23 tax. If you take the $23 as a percentage of the $100, Mr. Speaker, then the tax rate is 23 percent. Unfortunately, opponents of the FairTax Act--unbelievably there are some out there--typically speak about the FairTax Act in terms of an exclusive tax simply because the rate sounds higher to consumers. It is 23 percent. It is simple math: 23 percent. Not only do opponents of the FairTax Act fail to admit that the exclusive and inclusive rates have consumers paying the same amount of money, but they also compared the exclusive FairTax Act rate to the inclusive income tax rate. That is unfair, and that is misleading. That is a myth. It is 23 percent. Again, I get it. I know that is too high. I wish it would be lower, but it is not 30 percent.…”