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To: Zon
The fiartax would cause a 20% to 30% drop in the price of products and services. Thereby offsetting the consumption tax. After-tax prices at the cash register would be roughly the same. The same US products sold in other countries will be more competitive because prices can be reduced by about 22%.

?

Here's some simple math:

Businesses pay taxes on profits and gains. If a business pays 35% tax on their profit/gain how much profit/gain would they have to have to reduce their price even 20%?

Answer: 57% profit.

How many companies do you know of that produce 57% profit?

But you might say it's "accumulated" in the production chain. The majority of "the production chain" doesn't exist in this country.

You might say 'what about payroll taxes?...7.65% of one employee's wage or 7.65% of every employee's wage in the country is still only 7.65%...Payroll taxes don't "accumulate" or multiply, neither do income taxes.

31 posted on 03/03/2005 9:10:38 AM PST by lewislynn (My other car is an XC90....)
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To: lewislynn

Businesses pay taxes on profits and gains. If a business pays 35% tax on their profit/gain how much profit/gain would they have to have to reduce their price even 20%?

This has been explained to you several times. Businesses include all known and projected costs -- including tax cost --  into the price of the product before they set the price which they sell a product to a wholesaler, distributor or retailer. Businesses embed the cost of taxes into the product before they set the price.

You already knew that. .What is the point of you posting a false argument?

Honesty outlives the lie, spin and deception -- It always has -- It always will.


37 posted on 03/03/2005 9:28:11 AM PST by Zon (Honesty outlives the lie, spin and deception -- It always has -- It always will.)
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