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"Now let's say a $100 product used parts from 5 subs at $20 a piece. Each purchase from the subs would be $20 at 0.25% or 5 cents so the tax in the final product is 25 cents then when the final product is sold another 25 cents is added. That brings the price to $100.50."

Except you fail to recognize the next 10, 15, 50 or 100 levels in the supply chain for this part. That would add thousands, if not tens of thousands of transactions to this one part.

"Now let's talk about the APT tax base -- it is enormous at $856 Trillion (nearly a quadrillion)."

Yet, you fail to actually tell us what this base is. You cited a few examples in a post to me, but the bottom line is that it will be passed to consumers. Businesses are not charitable organizations. Your APT proposal doesn't expand the base, it only spreads the expense over more actions. An example of expansion would be the Flat tax proposal of getting all adults to pay. That would double the tax base.

"ALL THESE LOW RATES ARE ACTUALLY BASED ON ONLY HALF THE TAX BASE AVAILABLE."

This is the second such statement that you have made that makes your philosophy clear. It is pretty easy to deduce that you hope to recover as much taxation as possible and that is why you prefer the "painless" or hidden method. Are you sure you wanted to have a discussion around this subject with conservatives?

I'm beginning to think you are testing the waters and getting conservative responses so you will be prepared for their response.......

What is this "exponential" talk about cascades. The sum of the taxes on all the parts will equal the tax on the total now I grant you the Total will be taxes one more time when it is sold finally BUT that is only the tax times TWO so I'll give you 0.5% on products with sub parts or $100.50 on a $100 product. Quit talking in generalities and do the math. Aren't prices coming down 20% anyway?BR>
I have been a conservative all my life thank you.

I went over the tax base before and many LARGE parts of it will find it hard to pass the tiny tax on or it will be lost in the bidding. 11% goods and services, 25% securities; 26% foreign exchange related; and 25% money and account transfers. I can't say it any clearer and it has been understood by hundreds and maybe by now a thousand before you.

When I say lost in the bidding/negotiation process you all know very well contract negotiations move plus and minus 5 or 10% so how are you going to twist someone's arm for 0.25%. The same is true for security transactions. Yeah sure the day traders may scream - tough, the markets don't hinge on day traders regardless of what saj says.

Are you freepers really willing to pay and pay and pay so you can feel the pain -- that is also ridiculous.

No one has answered my question about how you explain, under the (un)Fair Tax, the severe double taxation of after-tax savings and after-tax home equity from which retirees draw their living -- that is mean and nobody will address it. I'll be mean to day traders and you take on the retirees and we'll see who wins.