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To: Principled
THe wage base is waaaaaaaaaaaaaaaaaaaay smaller than the consumption base.
And one of the reasons for this is that the FairTax includes government consumption in the consumption base. And who pays the tax these government pay? The taxpayers through higher taxes, which means my nominal wages need to increase or my real wages decrease. Once again, you are just rearranging where the tax is collect. If the FairTax is truly revenue neutral, there can be no gain solely from where the tax is collected.
526 posted on 02/16/2005 9:18:14 AM PST by Your Nightmare
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To: Your Nightmare
If the FairTax is truly revenue neutral, there can be no gain solely from where the tax is collected.

Is it your position that it is not revenue neutral?

The tax is coming from a much larger base - so as a participant in a system now with a relatively small base, I could pay less if the system were relatively larger- and still have the same collected.

5 of 10 individuals pay a total of $90 - that's $18 each.
but increase the number of people to 9...
9 of 10 individuals pay a total of $90 - that's $10 each.

Same amount of tax collected.

527 posted on 02/16/2005 9:25:46 AM PST by Principled
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