thank you.
btw do you have link/source for the 22% "embedded" tax?
btw do you have link/source for the 22% "embedded" tax?No one seems to eager to point you to a source for a 22% embedded tax in consumer prices, do they?
"btw do you have link/source for the 22% 'embedded' tax?"
I think the ancient one does.
btw do you have link/source for the 22% "embedded" tax?
The 22% number is an average over time of the impact of repealing the income tax and replacing it with a revenue neutral retail sales tax would would have on producer prices.
As such it is not a reflection of just the removal business income taxes from producers per-se, but the cumulative sum of all cost factor reductions and improved efficiencies reflected in prices received by producers.
The basic studies from which this claim is based are by Dr. Dale Jorgenson:
PDF: The Effects of Fundamental Tax Reform and the Feasability of Dynamic Revenue Estimation
http://www.economics.harvard.edu/faculty/jorgenson/papers/baker.pdf
, in Joint Committee on Taxation, Congress of the United States, The Modeling Project and 1997 Tax Symposium Papers, Washington, U.S. Government Printing Office, November 20, 1997 (with P.J. Wilcoxen), pp. 130-151.PDF: The Economic Impact of Fundamental Tax Reform
http://www.economics.harvard.edu/faculty/jorgenson/papers/208.pdf,
Frontiers of Tax Reform, Stanford, Hoover Institution, 1996, pp. 181-196; reprinted in Joint Economic Committee, Congress of the United States, Roundtable Discussion on Tax Reform and Economic Growth, One Hundred Fourth Congress, First Session, 1996, pp 98-112.
The older study forming a foundational basis from the later one which treats an NRST in detail in comparison with an equivalent Flat Tax and 1996 tax law as baseline. The older study looking at consumption taxes in the form of VATs and the Flat Tax in light of 1987 tax reforms and other studies, with a 1996 baseline.
The conclusions and results of those studies and Jorgenson's General Equilibrium Model provided the essential economic basis on which the FairTax NRST was designed by the AFFT economists and legal beagles.