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To: RobFromGa
And any amount of wages (including fica) is part of the price of the product rather than just additional tax cost embedded. The product price, then has whatever the merchant's profit might be and it is this amount upon which income taxes are levied to the merchant. If this is a 15% profit margin and the merchant's effective income tax rate is 25%, then the "income tax contribution" by the purchaser is 3.75% under the income tax and it would be 23% at the marginal FairTax rate. Note that this is NOT the embedded tax, but merely the tax attributed to a consumer purchase. The embedded tax is a smaller amount yet.

"... all the taxes are really already being paid as a consumption tax, when you buy goods and services you pay the taxes embedded in the items ..."

Claiming there is some sizable amount of income tax paid by a consumer when a consumer purchases under the income tax is - as was shown just above - spurious. Claiming that the item would not be made if the consumer didn't buy it is also spurious. And no, your employer doesn't "pay" your taxes - he only withholds marginal income tax/fica rates and forwards them as the law requires (so you can't get your hands on them). You still file income tax forms and "pay" your own taxes.

1,096 posted on 09/11/2006 11:54:13 AM PDT by pigdog
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To: pigdog

You are again proving that you know nothing about how a business works.


1,097 posted on 09/11/2006 12:01:23 PM PDT by RobFromGa (The FairTax cult is like Scientology, but without the movie stars)
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To: pigdog
"And any amount of wages (including fica) is part of the price of the product rather than just additional tax cost embedded."

You're parsing. Fica is taxes. Payroll withholding is taxes. Corporate taxes on profit is taxes.

Add all those together and you get "embedded taxes". On average, that amounts to about 22% of the purchase price, according to Boortz.

1,101 posted on 09/11/2006 12:20:21 PM PDT by robertpaulsen
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