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To: Kellis91789
At the State and local government levels, 3/4 the wages paid are to educators -- and not subject to FairTax.
The amount that state and local governments would pay under the FairTax has been studied. The conclusion was the states "would pay $346.2 billion in NRST to the federal government, an amount about 50 percent greater than current state and local general sales tax revenues."


At the State and local government levels, 3/4 the wages paid are to educators -- and not subject to FairTax. So those employees will cost 7.65% LESS than they do today.
Their wages wouldn't be taxable, but the building they taught in would be. The desks the students were sitting in would be. The books they were reading would be.

And where did you get your 3/4ths number? The information I could find says that in the U.S., out of $436,981,627 in K-12 education expenditures, $139,619,438 was spent on teacher's salaries. I really doubt $140 billion is 3/4ths of the state and local government salaries.

And the state and local governments wouldn't even save 7.65% on this number. The employer 7.65% is an exclusive rate, this would be a 7.1% inclusive rate and this is only applied to the wages of the employee, not their benefits.
563 posted on 04/10/2006 12:29:49 PM PDT by Your Nightmare
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To: Your Nightmare

Oh yes, Nightie - such a carefully-done study ... one that cannot even get the name of the FairTax sponsor correct and throughout uses the Bill Gale'esque inflated tax rate to produce the desired Chicken Little effect.

While all the time ignoring the amount the states now pay since they are taxed now by the federal government just as the federal government taxes itself. The "study" isn't meaningful at all but I'm sure you'll like it. Your tactic has always been (and still is) to throw up as much dust into the air as possible hoping that some of it blinds those who look no further for information.

When you see that's not succeeding, you then attempt to drag the thread off topic into some never-ending alleyway that is meaningless.

The primary issue to most people is freedom, friend. Your scare tactics are not working.


581 posted on 04/10/2006 5:18:30 PM PDT by pigdog
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