However, you may be making a logical error in comparing my example to statistics of the FairTax base. The current corporate tax system is much much broader than the FairTax base.I know it's broader, I used the FairTax base so there wouldn't be any questions about the "prices" we were talking about. The broader base would actually reduce the percentage that corporate taxes could possibly be in prices.
How do you figure that? As I understand it, the over all average of embedded taxes is going to approach the average tax rate for income, adjusted down a little by the payroll tax. The reason being is the profit portion, is taxed at the corporate tax rate. The payroll is obviously taxed at the payroll rate... but the thing that's easy to miss, is that the rest of the expenses are the sum of companies with similar breakdowns. Prices they are charged by everyone they pay out to, which would all have a similar breakdown in tax base. So even if a company's margin is very low, his expenses should have the same amount of tax burden as the average tax burden of all companies.
I would like anyone who understnds this better than me correct me if I am mistaken. But I believe that the amount of cumulative tax paid along the entire tree of production, would tend to approach the average income tax rate, adjusted down a little by the payroll rate.