Posted on 09/03/2006 5:18:40 AM PDT by Man50D
LOL. Hasty mistakes are made by everyone and quickly corrected. That's not what it was. It was a mistake you refused to even look at as you based an entire arguement on it - and it went for more than a few days. Obviously, the argument is made up. Which is why so many wonder why you don't tell us the real reason you oppose reform.
You agree that the FairTax will cause higher prices and that these will be ok because the purchasing power is what matters. Wage earners will receive a pay increase with their 100% paychecks to compensate for the higher prices. These prices will rise about 18-20% after the price cut and then the tax addition-- the full 30% for foreign items.
Stick with me here for just one more minute. The government will also need a "raise" to pay the higher prices, and it will take the form of additional revenue that needs to be raised. That additional revenue can ONLY be raised by increasing the FairTax rate, there is no other source to raise it. So, the 23% rate when multiplied by 1.18 is now 27.1% inclusive, which is 37.2% exclusive.
And that assumes no reduction in the base. If we assume just the very minimum that the base reduces 8% due to reduction in shelf prices-- ie. no reduction in unit volume of sales, just an 8% lower price for everything, then we need to divide the 27.1% by 0.92 to get a new inclusive rate of 29.5%, which is 41.8% exclusive. And this assumes ZERO evasion, and the same exact level of unit sales as now.
When you buy the $460k house ($500k now) you will pay the full FairTax rate and you will have to borrow enough money to pay for the house and the FairTax together. Since for most people the purchase of a house is more than their annual income by a bit, so your comments about 17% effective FairTax are even more bogus than they normally are.
With a 41.8% FairTax rate, the $460k home will be $649.5k
Sorry again Rob. I make no such assumption. It's just that 23% is in the bill. That's why I use it. I don't really care what it ends up being as long as it's revenue neutral.
If you can show the rate is wrong (not quote Gale), have at it. I'm sure it would bring you fame and notoriety. Go for it.
If you use Gale's work without understanding his moves, you're being set up like a bowling pin.
The FEDERAL government will not need to raise taxes. They pay themselves.
I think I'll leave it to the PhDs in Economics and LLMs in taxation to help me with my calculations. That means your numbers are worthless Rob. Live with it.
Have fun with navyguy. Don't leave any marks!
Thanks.
The Roscoe account is closed and has been for years. So much for your word.
http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(PPP)
Of course, being unable to separate tax law from law enforcement might be a major handicap for them too.
The 23% would be about right if all wage earners were going to take pay cuts to current takehome levels, and prices stay the same. Did you notice they haven't changed it since that major change came about?
It was 23% when all prices were going to be about the same with the FairTax included, and it is still 23% now when prices paid by government is going to pay about 20% more for everything.
Doesn't that seem odd that the government paying 20% more for everything didn't cause even a small increase in teh FairTax rate? Doesn't that seem impossible?
Under the nrst, I'd need at MOST $1200.
My nrst effective rate is likely to be lower than 17%. I assume in that calculation that I spend 100% of my earnings on taxables. I don't.
He's a FairTaxer- they don't think that rules apply to them.
Squirming comes naturally to NRSTers.
In the year when you buy a house, you spend much more than your annual income, whether you pay cash or not is totally irrelevant. The tax is paid on the pre-tax price of the house on the day of closing, and you finance it.
DId you forget that half... again?
I'll say it again, I don't care what the rate is as long as it's rev nuetral.
The federal government doesn't need any more money to pay tax on its purchases. It pays itself the tax.
nytol. picnic tomorrow with hundreds of screaming kids...
Given the difficulty buyers will have financing a new home purchase for 130% (or more) of the home's resale value, that situation won't occur very often.
This system loses with me.
I don't want to hear about it being flexed, adapted, improved, simplied, or amplified.
I want to hear that it's dead. Stone cold dead.
And then I'll break out into song.
Our tax system is an abomination.
The Roscoe account is closed and has been for years.
That's irrelevant. Roscoe is still registered, else wise it would be terminated and read "Nobody by that name." when Roscoe is entered in the search screen name box.. Our agreement is:
You registered the Roscoe account and are responsible for it and it's still there. I proved you have two screen names. As per our agreement you must never again post to FreeRepublic under any screen name.
You're still posting to FR and thus are in violation of our agreement.
If the rate (whatever it ends up) is revenue neutral combined with the fact that the consumption base is nearly twice as big as taxable income.... my purchasing power will increase. It has to. Ask YN. night...
No, that was not one of the possible assumptions used to come up with the 23% rate.
The federal government doesn't need any more money to pay tax on its purchases. It pays itself the tax.
This is totally false, the government does need to raise the revenue, if it didn't then we could just have the tax on government purchases be 300% and have no tax on any other transactions. Your logic is totally wrong on this point.
nytol. picnic tomorrow with hundreds of screaming kids... Just tell them stories about the FairTax fairy and they'll calm right down. Especially the part about the free candy for all the children, and More Christmas for all.
False. Ask the mods.
You need to read a little more closely.
There was no "federal government" in my post. There was no "usurp" in my post.
There was mention of a "one tax" system.
Hillary's best friends are the sheeple who continue to go along with this liberal claptrap that is our current tax system. It's carrots and sticks are big brother's best friend.
Think, man....think!
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