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To: SolidSupplySide
You, like all "Fair Tax" proponents I have seen, are not being intellectually honest here.

You'll have to be specific about my dishonesty. I am not being dishonest in any sense of the word.

You have asserted repeatedly something that is of no relevance to our discussion, claiming it is something important. You fail, however, to be willing to accept that under the retail sales tax, an illegal operator will pay a higher portion of his own taxes.

We've said the same thing to each other about three times. I understand what you're saying, that the transactions on illegal drugs will not be taxed... well friggin DUH! That's not the point. The illegal transaction will obviously not be taxed under an nrst- nor is the income produced from the trasaction being taxed under our income vat-tax. MIGHTY DUH. That is not what makes the difference in the portion of tax the illegal operator pays. That's the SAME, as we've both said, THREE TIMES! Good Grief!

What makes the difference - ie what I've been trying to get you to see- is that under the income tax, the ONLY portion of tax paid by an illegal operator is in hidden/embedded tax costs on goods... the illegal operator pays NO portion of the tax that all legal folks pay - income and payroll taxes. For simplicity, let's say under the income tax, an illegal operator pay only HALF of his taxes.

Now, under the nrst, 100% of everyone's taxes come from consumption taxes. ZERO comes from elsewhere. So whatever one spends on taxables represents 100% of his tax liability.

Of course, fairness rresulting from capturing more tax from illegal operators is just ONE benefit of the nrst.

There's also no more IRS.
THere's also no more payroll tax.
THere's also no more withholding of tax.
There's also the fact that our exports will be 25% cheaper overseas.
There's also the fact that imports will have to reduce their profitability to pay our sales tax without losing market share, making domestic goods more competitive.
There's also no death tax.
There's also no more taxes on necessities.

Buh Bye.

73 posted on 04/17/2004 10:45:44 AM PDT by Principled
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To: Principled
the illegal operator pays NO portion of the tax that all legal folks pay - income and payroll taxes.

This statement is clearly false. The drug user, an illegal operator, pays income and payroll taxes from income derived from his legitimate job. Under a sales tax, he escapes the tax completely on his illegal activity.

Sometimes it seems you concede that "Fair Tax" proponents are deceitful when they claim the underground economy would be taxed by a sales tax. It is absolutely clear that the underground economy is not taxed by the "Fair Tax" and any assertion otherwise is made out of ignorance or deceit. One thing is clear though, you seem to have an emotional attachment to the sales tax.

75 posted on 04/17/2004 11:53:23 AM PDT by SolidSupplySide
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