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To: kevkrom
Take econ 101 sometime.
I have, what does you econ 101 book say about corporate income tax incidence? What does it say about inserting a >30% wedge between the value and cost of a good?


Which only means that they don't pay tax on it. Interest is still additional outlay which goes into ROI calculations.
And it won't under the FairTax?
676 posted on 01/31/2005 1:58:36 PM PST by Your Nightmare
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To: Your Nightmare
And it won't under the FairTax?

Yes, but interest will be lower -- as the lender does not need to make up for the costs of taxes in their ROI.

679 posted on 01/31/2005 2:02:19 PM PST by kevkrom (If people are free to do as they wish, they are almost certain not to do as Utopian planners wish)
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