Posted on 10/19/2006 5:11:50 PM PDT by pigdog
"Under the FairTax, the value of all government transfers, including the FairTax prebate, would be reduced by the amount of the FairTax. "
The information posted from the Kotlikoff et al paper shows that statement to be incorrect:
"Nominal federal transfer payments TR that are not taxed under current law must remain high enough to command the same goods and services under the FairTax as they do under current law."
You can't read???Yes. Can't you explain your point - or don't you have one?
No - what I asked for was the SOURCE for the information she posted.
See #581.
(Hint: your purpose is not the truth either, but is to misstate all that you possibly can about the FairTax) - everyone knows that.
My comment was a paraphrase, not a quote. I provided you with a link (what you asked for) to a FairTax site and quoted the relevant text (exceeded your demand).
Are you playing one of your semantic games? I see no point in responding further to your posts on the subject.
A tax haven for investments, not a place to live and consume.
From your earlier post, your claim was:
"Under the FairTax, the value of all government transfers, including the FairTax prebate, would be reduced by the amount of the FairTax. "
The information posted from the Kotlikoff et al paper shows that statement to be incorrect:
"Nominal federal transfer payments TR that are not taxed under current law must remain high enough to command the same goods and services under the FairTax as they do under current law."
Of course, you misunderstood Kotlikoff and failed to post the formula that appeared with Kotlikoff's quote that actually confirms my statement. Here it is:
TRFT = TR07 (1+α)Where:
TRFT is nominal federal transfer payments under FairTax in 2007; TR07 is estimated nominal federal transfer payments under current system in 2007; α is the percentage by which market prices under the FairTax would exceed expected prices in 2007 under current law.
This is showing that under the FairTax, nominal federal transfers must be increased by the price increase caused by adding the FairTax to consumer prices. In other words, the value of federal transfers are reduced by the amount of the FairTax, so you have to increase the nominal amount of the transfer to keep the same real value.
Could it be that the purpose of the calculator is to mislead?
And a superb place for investment too.
The FairTax, savings untaxed except in case of emergency - not a pretty picture. Imagine all those Katrina victims providing windfall revenue to the government coffers.
NO - as I said previously.
I know what you said.
"Imagine all those Katrina victims providing windfall revenue to the government coffers."
You mean sort of like they did under the income tax??? Yeah, right!!!
Woo HOO!! A plan that encourages savings and investment makes it harder to create emergency savings than one that doesn't. The SQL logic in an (acorn) nutshell. Unbelievable.
The FairTax gives a guy a break when times are good, and kicks him when he's down.
And that's your story and you're sticking with it. LOL!!!
How so? Do you mean all those hidden, embedded taxes that don't amount to a hill of beans when illegals are paying them but balloon when FairTaxers are promoting the fantasy of reduced prices due to their removal?
"... the value of all government transfers ... would be reduced by the amount of the FairTax ..."
And here we see you say:
"nominal federal transfers must be increased by the price increase caused by adding the FairTax to consumer prices. In other words, the value of federal transfers are reduced by the amount of the FairTax, so you have to increase the nominal amount of the transfer to keep the same real value."
So let's see - you say that ALL federal transfers must be reduced but that federal transfers must be increased... HMMM! - Seems like a disconnect there somewhere since you've shot yourself in the foot by contradicting in one part what you said in another.
But, hey, we're used to that from you folks. Let's see ... increasing the transfers by the amount of the Fairtax is different from increasing the transfers by the amount of the FairTax. Suuuuurrrre!! it is!
I didn't misunderstand Kotlikoff at all. And BTW the equation you post does nothing to "confirm" you outlandish statement at all. The alpha term can be zero in which case there is no indexing at all but in any event your claim of "all government transfers being reduced" is wishful thinking on your part.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.