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Mr. Bill Pelland stated, "This means if you purchased $100 worth of food, including the 23 percent tax for the government, you would be getting $77 worth of food, which would then be marked up 30 percent to reach the $100. The 23 percent figure is deceptive."

Mr. Pelland, what you are not considering into your equation is the fact that prices should fall by nearly 20 percent because of lower cost of production. When you do away with the associated taxes that an employer has to pay for each employee, that would lower the cost of producing goods, therefore lowering the cost of goods to consumers. Take your same equation:

Currently, $100 worth of goods would cost you $108.25 (8.25 percent tax rate in Tyler)

Under the new plan, the price of goods should lower by 20 percent, so the same items that were $100 are now $80

Add 23 percent sales tax on to that, $98.40 or even the 30 percent as you suggested, $104.

Either way, you're still saving money. Remember under the current tax rate, you're paying $108.25 for those goods. With the Fair Tax plan, senior citizens have more buying power, not only because of the lower cost of goods (as shown above), but also the "little income tax" you mentioned on their fixed income is abolished.

Now, consider who the Fair Tax policy really hurts. Illegal immigrants who are working for cash now have to pay federal tax, drug dealers and other illegal proceeds will now have to pay tax and the wealthy who are fortunate enough to blow money on things others only dream of.

Brian Allison
Shreveport, La.