What they're contending there is that the economy would grow so much that the revenues would more than replace the amount of revenues lost through the elimination of the income tax. That means the economy would almost have to double in order to do that. Singer admits that things might be tough for seven or eight years with his plan, but says government needs to tighten its belt, although he's vague when it comes details. Low-income people have to spend all their money to survive, basically. Middle-income people, to have a decent lifestyle, spend most of their money.
Singer points out that no other state has ever voted to dismantle an income tax.
The FairTax would replace the income tax, corporate taxes, estate taxes and Social Security payments with a national sales tax of 30 percent. To address the regressive nature of such a tax, every American would also get rebate checks from the government each month to cover the cost of the tax on necessities like groceries and housing. Fair Tax supporters don't actually say their proposal would require a 30-percent tax, however. The tax-inclusive rate seems to confuse even the FairTax's supporters. Klein's misunderstanding is particularly surprising, given that she was working with the Arizona chapter of the FairTax's organization.