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To: Your Nightmare
This is just proof that the truth doesn't matter to you.
Either way it doesn't amount to very much...but don't take my word for it.

Pigdog:

"A couple of the opinions attempt the "... it's a wash ..." argument that you seem to prefer. It looks no better in their opinion that in yours and is easy enough to refute by taking, say, a $100 drug sale. The sale is not taxed under either IT or FairTax. Under the FairTax when spent by the drug dealer, the tax revenue gained is $23. Under the IT, the ONLY revenue gained (if any) would be at most the profit on the thing sold to the drug dealer ... let's say the seller has a good margin of 25% on sales or $25 on the drug dealer's $100. Of this $25, only a small portion would ever possibly end up as tax revenue since the tax on the $25 profit would likely be something like the 15% rate - or $25 x 0.15 = $3.75. This falls far short of the $23 tax "contribution" under the FairTax so the "it's a wash" arguments are nonsense no matter who makes them."
We both know a "margin" isn't all profit and that a "margin" is for profit AND overhead...but giving benefit of doubt, even if a "good margin" was all profit it's at best 3.75% tax....again don't take my word for it, pigdog said so himself.
27 posted on 08/18/2005 12:46:10 PM PDT by lewislynn (Status quo today is the result of eliminating the previous status quo. Be careful what you wish for)
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To: lewislynn

That's fine, Looie, if you wish to define profit as only part of margin; that'll just reduce the "tax contribution" from $3.75 to something even less and make the example even mo' bettah' in favor of the FairTax. Shall we say the profit is, then, 15% - making the "tax contribution" $2.25???

Or perhaps you'd like to do the arithmetic (and no, Looie - it's not math; its arithmetic).


28 posted on 08/18/2005 1:13:42 PM PDT by pigdog
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