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To: Principled
Suppose a family of four has necessities that cost them 26,400. When they buy those necessites, 23% will be tax. Hence 6072 of that 26400 is tax. (23% of 26400=6072).
If their necessities cost $26,400, they weren't met because they only got $20,328 worth of stuff. Looks like they need to spend their prebate to try and get some more of their necessities (but they still won't make it).
614 posted on 10/23/2006 5:49:20 PM PDT by Your Nightmare
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To: Your Nightmare
Been through this very same thing with you before so it surprising you raise it again.

They indeed get their full $26,400 worth of purchases.

627 posted on 10/23/2006 7:01:40 PM PDT by pigdog
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To: Your Nightmare
If their necessities cost $26,400, they weren't met because they only got $20,328 worth of stuff.

Nope. They got 26400 worth of stuff. And they had to pay tax on it, just like now - that's why they say "tax inclusive".

Supposing I had a 23% fed effective tax rate, my 26,400 in spending would've been 20,328 goods and 6072 tax. What's 20328 + 6072? Why it's 26400!

There is no difference between today's 23% income tax and a 23% nrst with respect to purchasing power. You somehow think that the income tax does not reduce purchasing power?!

678 posted on 10/24/2006 6:09:53 AM PDT by Principled
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