 The FairTax statutory rate , unlike most U.S. state @-@ level sales taxes , is presented on a tax base that includes the amount of FairTax paid . For example , a final after @-@ tax price of $ 100 includes $ 23 of taxes . Although no such requirement is included in the text of the legislation , Congressman John Linder has stated that the FairTax would be implemented as an inclusive tax , which would include the tax in the retail price , not added on at checkout — an item on the shelf for five dollars would be five dollars total . The legislation requires the receipt to display the tax as 23 % of the total . Linder states the FairTax is presented as a 23 % tax rate for easy comparison to income and employment tax rates ( the taxes it would be replacing ) . The plan 's opponents call the semantics deceptive . <unk> called the presentation misleading , saying that it hides the real truth of the tax rate . Bruce Bartlett stated that polls show tax reform support is extremely sensitive to the proposed rate , and called the presentation confusing and deceptive based on the conventional method of calculating sales taxes . Proponents believe it is both inaccurate and misleading to say that an income tax is 23 % and the FairTax is 30 % as it implies that the sales tax burden is higher . 
