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Sorry, IT Guy,

Update victim 16th Apr 2009

but you have described a most regressive tax. It has been pushed as a "Fair Tax", but in reality it hits those with limited incomes the hardest because they must spend a much larger percentage of their income on necessities.

A family with an income of only $50,000 must spend almost everything. A family with an income of $200,000 can live the same as the one with only $50,000 and save the balance for retirement. This "Fair Tax" is grossly unfair to the lower income family.

On the other hand, the same revenue can be collected with a "Flat Tax" on all income and remain progressive by exempting a large initial part of income from taxation. I suggest twice the annualized minimum wage.