To: Terpfen
You're going to have to explain your reasoning as to how a 23% rate adds up to $30 on a bill of $100 They use numbers to fool you.
They go by total cost first to fake you into thinking it is only 23 percent.
The total cost to you is $130. $30 of $130 is 23.08 percent, making the amount paid to the business/manufacturer $100.
If you look at it the way we pay sales taxes now the cost of the item is $100 and thus the $30 tax equals a 30 percent tax, which is the actual truth.
The so-called fair tax lies to you by making retailers and businesses advertise the after tax price so that the mathematically challenged will not realize they are actually paying seven percent more than they are being told.
54 posted on
04/20/2009 4:51:04 PM PDT by
OldMissileer
(Atlas, Titan, Minuteman, PK. Winners of the Cold War)
To: OldMissileer
So they round down the rate, and that’s how they achieve the numbers. Got it, thank you.
56 posted on
04/20/2009 4:53:10 PM PDT by
Terpfen
(Ain't over yet, folks. Those 2004 Senate gains are up for grabs in 2 years.)
To: OldMissileer
They use numbers to fool you.
They go by total cost first to fake you into thinking it is only 23 percent.
The total cost to you is $130. $30 of $130 is 23.08 percent, making the amount paid to the business/manufacturer $100.
If you look at it the way we pay sales taxes now the cost of the item is $100 and thus the $30 tax equals a 30 percent tax, which is the actual truth.
The so-called fair tax lies to you by making retailers and businesses advertise the after tax price so that the mathematically challenged will not realize they are actually paying seven percent more than they are being told.
You're only fooling yourself with that line of reasoning. Every product today contains nearly 23% embedded taxes, known as the inclusive tax rate. a $100 item has $23 dollars of embedded tax with the actual cost of $77. The Fair Tax will remove the embedded taxes by eliminating corporate income taxes and apply that amount as a separate entry, known as the tax exclusive rate (23/77=30%). Note the amount of tax collected is the same regardless of which rate is quoted and the total price will be approximately the same amount as it is today. It will not increase to $130$
69 posted on
04/20/2009 5:16:09 PM PDT by
Man50D
(Fair Tax, you earn it, you keep it!)
To: OldMissileer
Calculate by what percentage your take home pay would increase if the Fair Tax were enacted.
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