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To: Your Nightmare
You aren't changing the number of people paying, you are changing what they are paying it on. The reason the consumption base is larger than the income base is that government consumption is included. Otherwise, what are these consumers using to buy their stuff with if not income?

The comic relief on these threads is absolutely amazing at times! Like now!

Have you any idea how many people there are in this country who have INCOMES but pay no tax on them under the present system but WOULD pay with a NRST?

529 posted on 02/16/2005 9:46:27 AM PST by Bigun (IRSsucks@getridof it.com)
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To: Bigun
Have you any idea how many people there are in this country who have INCOMES but pay no tax on them under the present system but WOULD pay with a NRST?
Are you considering the payroll tax? If you include that, not too many people don't pay taxes on their income - a lot less than wouldn't pay taxes under the FairTax with it's FCA.

If you are trying to tell me people spend more than they make, that just doesn't make sense. The only consumption is larger than income is if you include government consumption like the FairTax does. But, again, those governments don't pay the tax, their citizens do. You are just hiding the federal tax in their state and local taxes.


From NIPA tables:
2004
Personal income
$ 9,659
Less: Personal current taxes
$ (1,036)
Equals: Disposable personal income
$ 8,623
Less: Personal outlays
$ (8,533)
Personal consumption expenditures
$ (8,231)
Personal interest payments
$ (188)
Personal current transfer payments
$ (114)
Equals: Personal saving
$ 90

536 posted on 02/16/2005 10:50:08 AM PST by Your Nightmare
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