FactCheck.org’s statement is based on a http://www.taxreformpanel.gov/final-report/TaxReform_Ch9.pdf ,Figure 9.4. The chart depicts a sales tax invented by the Treasury Department that doesn’t repeal regressive payroll taxes, and has a different tax base than the FairTax, causing the reader to wrongly infer the chart portrays the FairTax. Factcheck either simply erred or engaged in intentional deception.

The FairTax plan is a comprehensive proposal that replaces all federal income and payroll taxes with a national retail sales tax on new retail goods and services, creates a household prebate to reimburse taxes payed on purchases up to the poverty level spending, maintains federal revenue at current levels, and, through companion legislation, repeals of the 16th Amendment.

The FairTax will pass when our grassroots membership grows large enough. We need at least 10,000 voters in each of the 41 districts represented by a Member on the House Ways and Means Committee. We need at least 3,500 voters in every other district across the nation. That totals nearly two million voters, working for passage of the FairTax out of over 130 million registered voters that’s 1.5%.

FactCheck.org did an analysis of the claims in support by proponents of the Fair Tax. Please visit the following link to view the faulty logic of Fair Tax proponents. Fairtax.org provides a rebuttal full of holes and faulty logic at http://www.fairtax.org/site/News2?news_iv_ctrl=1541&page=NewsArticle&id=8249. It’s time for Fair Tax proponents to be honest with the American people about its faults.

FairTax as written proposes a 30% sales tax on all purchases. But with a sales tax so high, lots of people will try to get out of paying it. That’s why the nonpartisan Brookings Institution estimates that with enforcement it will have to be a 65% tax, Congress’s tax experts say 57%, and the Treasury Department says 89%. Whichever it is, it’s ridiculously high.

Bruce Bartlett, a top economic advisor to Reagan and Bush, has analyzed the FairTax in enormous detail and thinks it’s “deeply flawed”, its proponents are “dishonest”, and it “simply would not work at all if it were tried, which is why no country has ever attempted to collect all its revenue from a retail sales tax.”

The FairTax and income tax are quoted inclusively. For example, if $3 of every $10 of your income pays taxes then you are paying 30%. With the FairTax, if the after sales tax cost is $10, $2.30 went to taxes at a 23% inclusive rate.
If both taxes were quoted exclusively, a 30% inclusive income tax becomes a 43% exclusive tax, and a 23% inclusive FairTax becomes a 30% exclusive tax.

“The consumption tax, on the other hand, can only be regarded as a payment for permission-to-live. It implies that a man will not be allowed to advance or even sustain his own life, unless he pays, off the top, a fee to the State for permission to do so. The consumption tax does not strike me, in its philosophical implications, as one whit more noble, or less presumptuous, than the income tax.”

The builder is usually a corporation. Buying shares will be sales tax free. The house buyer buys shares in the builders corporation tax fee. The corporation then trades the shares for the house to reduce its outstanding share capitalization.

Or
A corporation is formed per new house. The buyer then merges his corp with the house corp.