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Due to the subsidy checks, the lowest effective tax rate under the FairTax plan is negative for families consuming less then the defined federal poverty line in new goods and services: the taxpayer receives more money from the government than they pay in sales tax. The effective tax rate to a family is variable, with a maximum rate of 30% for the most lavish spenders {{ref|NRSACalc}}{{ref|ftv-effectiverates}}. By choosing what to consume (used goods) or how much is consumed, the effective tax rate is in hands of the citizen.
Even when payroll taxes are factored in (7.65%), most taxpayers' federal tax liability is currently less than 23% of their adjusted gross income (AGI). The average income tax rate by itself in 2001 was 14.23% of AGI. {{ref|irs-soibulletin-2001-table6}} The FairTax, however, replaces all payroll taxes as well as income taxes. This means the average worker is paying 7.65% of income in payroll taxes in addition to the 14.23% average income tax rate. Together, the income and payroll taxes replaced by the FairTax are 21.88%. While less than the stated 23% rate of the FairTax, the effective rate of the FairTax is lower than 23% due to the effect of the rebate. Using these averages for the current system, for example, a single person with an income of $90,000 is currently paying $19,692 in income and payroll taxes. This same person would pay only $18,400 under the FairTax. People with lower incomes would benefit even more.
===Other rate estimates===
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