American Chronicle: The 'Fair Tax'
Congressman Linder makes a mistake in referring to the tax as 23% (it is only 23% when viewed "tax-inclusive"; the sales tax amount is 30%), but overall a good article.

With regards to "tax-inclusive" vs. "tax-exclusive": if the amount is considered as part of a whole, we say it is "inclusive". For instance, if you make $10,000 and pay the government $2,300, you have a 23% "tax-inclusive" rate (since the 2,300 is 23% of the "whole" 10,000). If you thought of it as $7,700 take home + $2,300 tax, then the $2,300 is ~30% (2300/7700) from a "tax-exclusive" point of view. You can see how this translates to sales tax- the latter would be the price ($7,700) + 30% sales tax ($2,300).

BTW, "$10K" was used in the example so I didn't have to pick up a calculator. There is also the matter of the prebate, which lowers the effective taxable base, but you should investigate that at the Fair Tax website.

Understand now?