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To: pigdog
So your definition of "hidden tax costs" or hidden taxes" is some part of business income taxes, employer portion of fica, compliance costs, opportunity costs, etc. Now, on average, what percent of the price of the product is due to this? Is it 3.75%? Is it 9%? Or some other number?

Second question. If the employee portion of fica and federal income tax withholding are not included in hidden tax costs or hidden taxes, what are they? Doesn't the buyer pay these taxes when they buy the product? Aren't these taxes, therefore, hidden taxes?

1,134 posted on 09/12/2006 8:46:12 AM PDT by robertpaulsen
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To: robertpaulsen
You seem to have a bit of a reading problem. The hidden taxes that will be removed when the income tax is gone is (per stipulation with your naysayer buds) 9% even though many FairTax supporters believe it will be greater. That's been stated over ... and over ... and over on these threads.

The employee portion of fica and their income tax withholding are included in costs of the thing and, when purchasing for consumption, the amounts are part of the costs of the product or service which may (or may not) eventually lead to income taxes being paid if the business manages a profit. At that point it is the business paying its taxes even though the money comes (as always) from the consumer. Trying to pretend that such amounts paid as tax by the business are actually the consumer's taxes is disingenuous. They aren't as others have pointed out to you on this thread - and which you apparently don't understand. These merely raise prices to the consumer and a good part of that (but not necessarily all) will remain when the income tax goes away due to the effect of "sticky wages".

And now a question for you. Why have you not done as I requested and make use of the FairTax effective tax rate calculator and posted your own effective tax rate on the thread as I requested to help you with your "baseball bat" example in #917. the calculator is completely anonymous and none of your information is available to others - so what is your fear of using it???

1,136 posted on 09/12/2006 9:27:17 AM PDT by pigdog
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