Posted on 01/31/2005 7:12:16 AM PST by bmweezer
I was thinking the same thing.
Especially after my brilliant cinematography at the most recent New York FreeRepublic Ball.
[sarcasm intentional]
-good times, G.J.P.(Jr.)
Thanks.
Yes.
Hey, I never know anything.
*chuckle*
I know the least among all of FReepdom!
No, not clever, that idea is idiotic. $23.00 is a 23% tax on the selling price of 100 dollars. If the merchant charges $129.87, he is charging a 29.87% sales tax on a $100 sale.
jones
No, what you need to provide is any sort of resource that says that evasion will be higher under the sales tax than under the income tax.No, because the income tax base and rates already have the evasion factored into them. The point is not that there would be more or less evasion/avoidance under the FairTax than the income tax, it's that there would be an increase in evasion/avoidance compared to the current state sales taxes and other goods and services in the FairTax base. It's this increase in sales tax evasion/avoidance that was not accounted for when the rate was calculated. Increase the sales tax rate from 6% to 36% and the sales tax base will definitely shrink due to evasion/avoidance.
When Kitty Carlisle gets through with her stupid question, it's my turn.
No, not clever, that idea is idiotic. $23.00 is a 23% tax on the selling price of 100 dollars. If the merchant charges $129.87, he is charging a 29.87% sales tax on a $100 sale.
jones
Why would you make such a ridiculous assumption? If the demand goes up now, producers strive to increase supply to meet that demand. Why would that change?
Why do you want to see the current system continue? What is your stake in it? Is your narrow self interest so overwhelming that you'd stand in the way of such a positive change for good, for liberty, for prosperity?
What makes you tick?
Wrong. The proposed Fair Tax is simply treated as another sales tax, added to the subtotal of items purchased.Sorry, jonestown, but you most certainly mistaken. I was confused by this intially, too.
I know the FairTax rate is 23 percent when compared to current income taxes. What will the rate of the sales tax be at the retail counter? 30 percent. This issue is often confusing, so we explain more here.
When income tax rates are quoted, economists call that a tax-inclusive quote: “I paid 23 percent last year.” If that were the case, for $100 one earned, $23 went to Uncle Sam. Or, “I had to make $130 to have $100 to spend.” That’s a 23-percent tax-inclusive rate.
We choose to compare the FairTax to income taxes, quoting the rate the same way, because the FairTax replaces such taxes. That rate is 23 percent.
Sales taxes, on the other hand, are generally quoted tax-exclusive: “I bought a $77 shirt and had to pay that same $23 in sales tax. This is a 30-percent sales tax.” Or, “I spent a dollar, 77¢ for the product and 23¢ in tax.” This rate, when programmed into a point-of-purchase terminal, is 30 percent.
Note that no matter which way it is quoted, the amount of tax is the same. Under an income tax rate of 23 percent, you have to earn $130 to spend $100.
Spend that same $100 under a sales tax, you pay that same $30, and the rate is quoted as 30 percent.
Perhaps the biggest difference between the two is under the income tax, controlling the amount of tax you pay is a complex nightmare. Under the FairTax, you may simply choose not to spend, or to spend less.
You hold the prestigious position of "Keeper of the FreeRepublic Troll Rolls."
>> Please explain why anything would be costing 35% more. That makes no sense at all.<<
Tax.
Look at the whole picture:
Presently, the cost of imbedded taxes raises prices 20 to 25%.
Presently, the feds take 20 to 30% of your INCOME.
The FairTax will only be 30% of what you SPEND and prices will be lower because that imbedded taxation cost is GONE.
You will have a lot more to spend. Spending will not go down.
You are being illogical or dishonest to say otherwise.
LOL!
Okers.
>> It could revolutionize every economic model we have.<<
I think it would. BTW, one of the strong arguments (and I mean REALLY strong) for home ownership is the deductibility of your interest and real estate taxes. Several industries have grown up around it.
With no income tax and only sales tax, say buh-bye to all of them to one degree or another. There will also be less incentive to own your own home so I suspect being a landlord will be more profitable. Except say goodbye to all those tax incentives for owners.
The playing field in one of the most dollar-laden industries in the country will suddenly switch into a parallel dimension. New rules, new game. Kind of reminds me of rollerball...
*eep!*
LOL
Gabz stubborn?
Nah.
Just firmly rooted in her beliefs and willing to agressively defend them.
But not stubborn.
>>Look at the whole picture:
Presently, the cost of imbedded taxes raises prices 20 to 25%.
Presently, the feds take 20 to 30% of your INCOME.
The FairTax will only be 30% of what you SPEND and prices will be lower because that imbedded taxation cost is GONE.
You will have a lot more to spend. Spending will not go down.
You are being illogical or dishonest to say otherwise.<<
Look at the whole picture. You have only touched on a piece of it. Keep in mind, the government will need the same money it always needed, except they will get it in a different way. Do not think your tax will go down. Look at what you pay in federal taxes, along with what the companies that produce and market pay in federal taxes (hidden in the prices). It will all be exposed now as a separate, naked, sales tax.
I think I am being conservative at 35%.
I can make a much better case that the prices would stay the same than you can make for prices dropping.
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