let's say the seller has a good margin of 25% on sales or $25 on the drug dealer's $100. Of this $25, only a small portion would ever possibly end up as tax revenue since the tax on the $25 profit would likely be something like the 15% rate - or $25 x 0.15 = $3.75.Legal or illegal you can't come up with a 20% price reduction by eliminating the income tax. In fact the best you can do is 3.75% and that's on "a good margin of 25%"
Thank you Lapdog for exposing another of your Fairtax frauds using your own math and your own words.
Sorry, Looey, but the 3.75% applies only to the illegal income when spent under the current system.
This has little to do with whatever the entire seller's income tax might be but is merely an example dealing only with the illegal income when spent. The prices increased to the seller involved had already been increased by the embedded taxes that had cascaded into price structures before he sold whatever this item was.
Under the FairTax these prices paid by the seller to purchase his stock will decrease by some good amount allowing him to lower his prices to his customers (including the drug dealer). This lowering might be 5, 10, 20% or even more - point is it will allow a price reduction and most people think that's a good thing. Guess you'd rather see higher prices, eh?