Okay then, since you won't explain it I will. It's like discount verses interest. If you have a payment due that is, say, 25% on a purchase, what is your charge? Here is a good example: If I buy a treasury bill due in one year at a discount rate of 10%, I pay 9000 dollars for a 10,000 dollar treasury bill and at the end of the year I get back 10,000 dollars. But in reality, I am only investing 9,000 dollars to earn 1,000 over that year. Hence my actual rate of interest is more than 10%.
So if I go into a store and plop down 100 dollars for a television set, I am not going to be charged 123 dollars under the fair tax, I am going to be charged 130 dollars. That is the gross payment minus 23%. That is my understanding. Is it correct? lewislynn?
So if I go into a store and plop down 100 dollars for a television set, I am not going to be charged 123 dollars under the fair tax, I am going to be charged 130 dollars. That is the gross payment minus 23%.
That is my understanding. Is it correct?
Anyone?
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And, if that is correct, why is anyone even saying that that the proposed Fair Tax rate is 23%, if it is in fact 30% ?
Now I'm even further confused.
I really have no clue what you're talking about.
It is if the $130.00 includes all other required state/local/federal taxes, fees, excises etc. In other words if the $130.00 in your scenario is "the gross payment" you're correct..If not, no you aren't correct