Well I suppose pigface, but won't they have to pay more for the book? Somehow you guys seem to think you pass a tax and free money is just generated out of thin air. If you get to 'have more money', guess what, you are going to have to spend more money for the same things. After 7 years of this, I would think that point could have gotten through your thick head, but obviously it hasn't.
Nope, Rongie - that's why I call you that as a pet name ... there'll be a lot more economic benefit for most people (possibly even you). And it's anything but generated out of thin air as you claim. It's a logical benefit of removing the tax-bondage that companies and individual taxpayers are now in.
That all goes to help reduce prices, not raise them. You Squirrels should stay in your nests ...
Revenue neutral. Oh, and there's that little part about the taxes being voluntary. But let's not let philosophy get in the way of a good bash session.
Frankly, I think you are a broken record on this.
Let's take a simple example that you might even be able to understand. A single individual making $30,000 a year.
Currently, his federal tax liabilty (Fica and income) is $4,838. This leaves a disposable income of $25,163 a year. Let's stipulate that he saves nothing in this example.
Under the Fair Tax plan he will have his $30,000 income plus a monthly check to cover basic living expenses (they use $400 a month but it's based on where you live); for this example let's say $3,600 a year. This leaves $33,600 a year in disposable income. At his income/FICA tax level of disposable income (apples to apples) the 23% Fair Tax would be $5,890 leaving him with $2,547 more to save.
And if he saved, say, $2,400 a year under currently then his disposable income would be $22,763 and at 23% his Fair Tax would be $5,236. Based on the same calculation as above he would end up with $5,600 more under the Fair Tax.
This, of course, assumes he keeps his spending at the disposable level under the income/FICA system.
It also doesn't take into consideration the fact his employer won't have to match his Fica of $2,295 of which he might share. And his company won't have to pay the corporate income tax and thus won't need higher revenues to maintain their final profit percentage they wish to have.
I don't know if you know anything about budgeting but in my business we work on an a final after tax profit percentage and adjust revenues, and thus pricing, accordingly. Yes, we might keep it all under the Fair Tax but that would be stupid because not all of our competition would do the same. In my business, upscale hotels, the relation to room rate and occupancy is a tight rope we walk to maximize revenue and not having to pay a corporate income tax and match the hundreds of thousands of dollars FICA consumes would allow to decrease our rate and gain occupancy percentage increasing our bottom line even more.
And then there are the many businesses that have such small profit margins they can grow and keep prices low for the same reason: no FICA matching and no income tax.
Of course, you'll just reply with some snarky comment because, as we all know, you are the great Always Right!
There are times that we reach a point with certain individuals that just can't be reasoned with. Even reading the book won't make a difference with these people because they don't want to hear it.
So we admit that this person must be 'Always Right' even if they are sometimes wrong and let it go.