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???
Whoa, whoa, whoa! That wasn't my question. That wasn't even close to my question.
And you say I have a reading problem?
Let's try this again. 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 TODAY is due to this? Is it 3.75%? Is it 9%? Or some other number?
I never said it was the consumer's taxes. I said it was the consumer's money that paid these hidden taxes. The company is merely a conduit and forwards this money to the federal government every pay period on Form 941.
"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"."
Humor me. IF they all remained, what percentage of the price of the product would they be?
What's the point?
I mean, sure, I can figure my effective tax rate today. And I can even use your phony table to figure my effective rate under the Fair Tax. So?
What's the price of the bat under the Fair Tax? You don't know. I don't know. Nobody knows.
It is manufactured locally or is it an import? Has the manufacturer reduced his price to the wholesaler? By how much? Has the wholesaler passed that savings (if any) on to the retailer? How much? Has the retailer passed on that savings (if any) to me?
What good is it to know that my effective rate went down 20% if the price I pay for the bat rose 30%?
You're piling assumption upon assumption then concluding mathematically to the thousandths of a percent that I, robertpaulsen, am going to save a gazillion dollars and so is everyone else in America. I DON'T BUY THAT.