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To: GregoryFul
It is preposterous for you to pretend you're ignorant of the effects of the income tax on earnings. Why would you pretend so?

An item with $100 price tag costs me $133 (I have a 25% effective fed tax rate) due to the costs you ignore.

You are actually putting forth that the nrst will reduce purchasing power but that the income tax doesn't. That's not very good.

611 posted on 10/23/2006 5:20:53 PM PDT by Principled
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To: Principled
Confusing, you responded to the wrong post, or are you one and the same, batman.

Lets not confuse the issue, an item that costs $100 costs $100 in current income. Lets change that to units of labor. If I'm willing to pay 10 units of $10 per hour labor for something now. I'm likely willing to pay 10 units of labor, and unlikely to pay 11 units - at whatever compensation rubber-ruler unit at some other time. So the $100 needs adjustment in terms of economic unit expended effort, not in terms of the rubber-ruler units you propose.

Prices are established in terms of the economic unit's efforts to obtain their (or its) desires, not in terms of your rubber units of dollars or euros or rupee or pesos. Give me, and economic unit, or others in a like situation 10x the dollars, and all prices or all desireable goods will gravitate quickly to 10x the rubber-rulered price. But now if my desire is burdened with a 30% tax. Well, if I'm paid 30% more, who cares. But I'm not, I'm paid maybe 15-25% more, about the effective tax rate of the middle class. So I cannot/will not buy. Economy screwed - right?

615 posted on 10/23/2006 5:57:08 PM PDT by GregoryFul (There's no truth in the New York Times)
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