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: Man50D
Every product today contains nearly 23% embedded taxes, known as the inclusive tax rate. Every state in the country has rejected your phony "inclusive" sales tax rate. They all use the actual sales tax rate instead.
77 posted on
04/20/2009 5:33:59 PM PDT by
Mojave
(Don't blame me. I voted for McClintock.)
To: Man50D
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%). That only works if employee's take home pay today equals his entire paycheck after the FairTax.
95 posted on
04/20/2009 7:56:06 PM PDT by
lucysmom
To: Man50D
You're only fooling yourself with that line of reasoning. The only people fooling themselves are the fair taxers.
The so-called embedded taxes will remain by having their names changed from corporate income to sales taxes, while maybe set at a lower rate, will still be collected. Sort of like a VAT.
People that jump up and down talking about some "pie in the sky" have, in the course of history, always suspended belief and history to further an idea that sounds good but will only work in a vacuum without the vagaries of man.
Just trying to get a Constitutional Amendment through that will repeal the current income tax and implement the fair tax will never have enough words built in to not have loopholes big enough to drive a Mack truck through. Thus enabling politicians to do what they always do, steal our money to further their personal agendas and consolidate power.
Also, I do not support people who start out at the gate by lying to the people. The tax is a 30 percent tax, not 23, and no amount of dissembling or talk about "embedded taxes" make the initial lie right. Obfuscation is not the way to get people on your side and there are still enough educated people out here who can still understand simple mathematics to know they are being lied to once again. If you want it at 30 percent then stand up and tell people it is 30.
142 posted on
04/21/2009 6:06:02 AM PDT by
OldMissileer
(Atlas, Titan, Minuteman, PK. Winners of the Cold War)
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