the tax bite (taxes paid and compliance costs) is not taken solely out of retail sales (more properly called "personal consumption expenditures") as you claim. The tax bite comes out of the entire GDP of $12 T (yes, the equipment sold to a business - found under "Gross Domestic Investment" not "Personal Consumption Expenditures" - has a tax bite as does Government Consumption. )Redoing your math with the proper denominator:
Net Taxes passed along in retail prices = $1,030B / $12T = 8.6% which is what prices should fall while maintaining current after-tax profit levels for all American businesses.Hmmmm ... that seems to put the number right where Rob said it would be.
$1,030B / $12T = 8.6% which is what prices should fall while maintaining current after-tax profit levels for all American businesses.Using the current high prices of gasoline coupled with RECORD high profits for the oil companies as my guide I would prepare for what is written and what I know. That is, there would be a 30% sales tax added to whatever the price is the day of implementation. If my competitors are of the Fairtax mind to lower their prices the amount of the income tax they would no longer pay, I'll be that much stronger in less than a months time.