[Your Nightmare]

25 cents for federal individual taxes

So you're dropping everyone's salary by the amount of their payroll/income taxes? I thought I got to take home my entire check with the FairTax.

22 cents for federal business tax costs

A gross overestimation. Let's do the math: 22% of everything sold in the US plus exports would mean the "federal business tax costs" would be $2.31 trillion! The total taxes paid by businesses in 2003 was $488.25 billion, and most of that was payroll taxes which virtually every economist agrees is really paid by labor through lower wages. That leaves a minimum of $1.8 trillion for business tax compliance costs! Most reasonable economists put the number around $100 billion.

The numbers don't add up.

[lewislynn]

So you're dropping everyone's salary by the amount of their payroll/income taxes?

That's the only mathematical way they can reduce prices 20-30%.

They'll tell you not getting a paycheck increase is a trade-off for lower prices. What they won't tell you is it reduces your purchasing dollar and disposable income...If you don't like it, buy used shit from the wealthy.

[ancient_geezer]

A gross overestimation. Let's do the math: 22% of everything sold in the US plus exports would mean the "federal business tax costs" would be $2.31 trillion!

The tax costs to business include not only the tax but the overhead and opportunity losses associated with the impositon of income and payroll taxes. Planning, accounting, reporting, litigation, necessary price increases to cover uncertainty of the amount of tax, discincentives arising from the tax code in doing business in more productive manners ...

The total impact on to business that arises out of the income/payroll tax system is substantially beyond the direct dollars extracted by government from businesses.

Federal business tax cost inclulding the actual income and payroll taxes paid can very well exceed that $2.31 trillion you figure in our $11 trillion dollar economy.

[ancient_geezer]

So you're dropping everyone's salary by the amount of their payroll/income taxes? I thought I got to take home my entire check with the FairTax.

The threads opening article tags your methods well.

It as can be seen by noting the actual content of reply #33:

Under the NRST the cost to buy that 78 cent widget is

• 23 cents NRST
• 4 cents state tax on the base product price
• 78 cents for the base (taxfree) product.

================================

• $1.05 total

And you receive your full gross paycheck plus the FCA for your household with no income or SS/Medicare taxes taken out to spend or invest as you please.

I know which I favor.