What’s In It For Me?
Converting to a National Sales Tax
 

Analysis for single person, no children
Example 3

Single person, no children			Poverty level:	$8,240
Minimum wage is $5.15/hour
Hourly wage	$20.000		Total amount paid for child care	N/A
Workers per household	1
Hours worked per year, paid vacation	2,080
Annual household income	$41,600
Under current income tax			Under a 14% NRST
Exemptions	1		Exemptions	N/A
Annual household income	$41,600		Annual household income	$41,600
Standard 1999 deduction	$4,300		% of income spent on taxable items	40%
Exemption deductions ($2,750/person)	$2,750		Sales tax rate	14%
Total deductions	$7,050		Total deductions	N/A
Taxable income	$34,550		Income used for taxable purchases	$16,400
Approximate tax due	$6,426.50		Sales tax paid on taxable purchases	$2,329.60
Child care credit	N/A		Child care credit	N/A
Approximate tax due	$6,426.50		Approximate tax due	N/A
Effective tax rate	15.45%		Effective tax rate	5.60%
Net annual effect of hidden embedded costs
Tax paid by current income tax	$6,426.50
Tax paid with 14% NRST	$2,329.60
Net effect	$4,096.90
Improved efficiency with new tax system	2.50%
Annual savings due to improved efficiency	$1,040.00
Overall annual savings under NESARA	$5,136.90