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To: expatpat

See #59. Whatever it is, it will have to be made up in the sales tax rate, 

The fiartax will be revenue neutral so of course the it will bring in the same amount as the current system does. Nobody claimed otherwise as you imply. It's not nice to.... well, I'll try to make it as clear as I can.: do you still beat your wife?

and the embedded cost will remain. 

When the embedded costs the company is now paying to the government are removed the do not remain. Your argument is illogical or delusional -- you chose.

In fact, it will cause the employee to need more than his original salary because now the worker has to pay the 7.62% employer share himself, via the sales tax. 

The 7.62% will be a portion of the amount a company will reduce the price of a product. Myopia blinds you from seeing the obvious.

If he doesn't get more, the employee is getting screwed.

Except that your premise fails thus so does your attached argument.

Benefits of the fairax:

  1. Taxpayers see every time they're at the cash register how much government cost them -- leads to reigning in government spending.
  2. Money put into savings and capital gains are not taxed.
  3. US exports gain competitive price advantage.
  4. Many corporations will move manufacturing operations and headquarters to US -- more jobs associated with new business.
  5. Abolishes the IRS
  6. Financial privacy.
  7. Approximately 4 billion man-hours now consumed by complying with the current system will be reallocated to productive efficiencies in the economy.

You're an expat what do you care unless perhaps you sell tax avoidance manuals/information to U.S. taxpayers?

I have no reason to argue with you. You can declare yourself the winner -- or not -- or claim anything you want. I'll stick with the experts and vast majority of people that have scrutinized the the fairtax and agree on it being the best alternative to the present income tax.

76 posted on 03/03/2005 12:05:47 PM PST by Zon (Honesty outlives the lie, spin and deception -- It always has -- It always will.)
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To: Zon
Let's see where we agree.

1. Taxpayers see every time they're at the cash register how much government cost them -- leads to reigning in government spending.I agree whole-heartedly with you here, tho' it needs to be added on at the register to make it very apparent. The govt. will try to get it hidden in a gross price like PAYE.

2. Money put into savings and capital gains are not taxed.This is good, but only applies to future savings -- those who already have after-tax savings will be clobbered with double taxation.

6. Financial privacy. Wholeheartedly agree here.

7. There will be some gain here, tho' only partial -- but it will also save a lot of fear and loathing every year.

I differ with you on #3, 5, but that's a different post.

87 posted on 03/03/2005 12:25:24 PM PST by expatpat
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