Posted on 06/10/2005 11:13:37 AM PDT by Always Right
Around here, they (BB) charge more for your rental. They let you keep it longer, but that's not much consolation.
Please, enlighten me.
Now tell me something, what do you think an El Pasoite would do in this situation. Stay in the good ole US of A and pay an extra $29, or, go shopping in Ciudad Juarez and get a great bargain.
Is a $30 dollar savings going to offset the time, hassle, and expense of traveling to Mexico, the time spent shopping, and the time, hassle, and expense of traveling back to the US? And if Mexico is currently greatly cheaper, why isn't everyone on the border already purchashing their items in Mexico?
I don't really understand this - but I take it to say that I am defending the post - I was not. I only jumped in to list the requirements ( legal resident, valid SSN).
My non-employed wife and kids each have a SSN. We all live in the same household. Do we each get a check, each for the same amount? It seems like the 'poverty level of expenditures' is different if we're all in one household vs. having two, three, or four.
Our last revolution produced a pretty good thing, don't you think? Besides, it is way past time that the government was shaken up.
Yeah, but we don't rent often enough for it to be worthwhile.
It is never too late to scrap a piece of legislation that was thought up by the Marxist in Congress.
Your video store scratching for survival will be very happy to have the higher margins -- it makes his survival that much more probable. (However, there will be competition in some areas, like fast-food, but not in others)
You have something to quantify that so we can make some comparisons?
Here is a table compiled from Dale Jorgenson's US Business sector estimates of change in production and price received by producers for the Fair Tax legislation.
Jorgenson uses an IGEM simulation solving equilibrium prices for optimum business profits across 35 business sectors in balance with a set of household consumers across a full range of demographics and incomes seeking maximum value for their expenditure.
A copy of the study can be aquired from AFFT by email, just request :
THE ECONOMIC IMPACT OF THE NATIONAL RETAIL SALES TAX
By
Dale W.Jorgenson
May 18, 1997
Final Report to Americans For Fair Taxation
In the third the final column I computed the net price,(assuming a 23% NRST) paid for consumption by an assumed "retail" customer for each business sector via:
Price(consumer)% = 100*((1-Price(producer))/(1-Rate(nrst)) - 1)
and present the change in NRST inclusive price to a final consumer in the last column of the table.
Presuming sector goods or service are sold to a final consumer for each sector the net change to consumer is represented in the last (shaded) column. Those shaded red represent net price increases (NRST inclusive) to the consumer.
I would submit that those NRST inclusive consumer price changes are within ±5 percentage points of the actual values that can be expected.
| First Year 1996 Percentage Changes for FairTax legislation, replacing 1996 tax law | |||
| Business Sector | % Change Production Quantity |
% Change in Producer Prices |
% Change in Consumer Prices |
| Agriculture | 22.8% | -22.26% | +0.96% |
| Metal Mining | 31.96% | -22.51% | +0.64% |
| Coal Mining | 13.77% | -24.63% | -2.21% |
| Crude Oil | 5.10% | -13.25% | +12.66% |
| Other Mining | 34.99% | -23.50% | -0.65% |
| Construction | 55.28% | -24.48% | -1.92% |
| Food Products | 20.79% | -22.84% | +0.21% |
| Tobbacco | 34.00% | -25.14% | -2.28% |
| Textiles | 32.58% | -23.21% | +0.27% |
| Apparel | 17.89% | -19.19% | +4.95% |
| Lumber, Wood | 53.14% | -22.51% | +0.64% |
| Furniture | 73.63% | -22.36% | +0.83% |
| Paper | 28.13% | -22.81% | +0.25% |
| Printing | 15.22% | -24.91% | -2.48% |
| Chemicals | 33.91% | -21.83% | +1.5% |
| Refining | 6.22% | -16.05% | +9.03% |
| Rubber, Plastic | 49.96% | -22.66% | +0.44% |
| Leather | 24.13% | -15.25% | +10.06% |
| Glass, Inc. | 48.25% | -22.63% | +0.48% |
| Primary Metals | 38.62% | -20.72% | +2.96% |
| Fabricated Metals | 47.29% | -23.20% | -0.26% |
| Non-electric Machine | 55.86% | -22.26% | +0.96% |
| Electric Machinery | 55.25% | -21.04% | +2.54% |
| Motor Vehicles | 60.82% | -18.53% | +5.81% |
| Other Transportation | 16.90% | -23.80% | -1.04% |
| Instruments | 24.51% | -22.89% | +1.00% |
| Miscellaneous Manufacturing | 57.57% | -17.95% | +1.07% |
| Transportation | 17.71% | -24.45% | -1.88% |
| Communication | 14.79% | -25.30% | -2.99% |
| Electric Utilities | -9.05% | -23.51% | -0.66% |
| Gas Utilities | -8.29% | -20.03% | +3.86% |
| Trade | 28.87% | -25.43% | -3.16% |
| Finance, etc. | 16.93% | -24.87% | -2.42% |
| Other Services | 12.04% | -25.43% | -3.16% |
| Government Enterprises | 18.56% | -25.57% | -3.34% |
XPAT: You and your fellow FT fanatics keep telling me the buyer won't pay zny more for his goods and services. Which is it?
Well, tax reform proponents have been showing the income tax fanatics this for some time. But the kool aid drinkers can't see the idea of eliminating costs to business leading to lower prices. The income tax kooks love the income tax so completely, they say it's good for everyone!
Just so happens the eliminated costs are about the same as the nrst. So the buyer will pay the nrst and still pay about the same for products.
Then what's your point? I stated that I disagreed with it and why I disagreed with it. Telling me to "take it up with the original poster" accomplishes nothing unless you are here to argue for argument's sake.
We went through that a month or so ago. I don't believe any conclusion Jorgenson comes up with, after I found he was included in his compliance costs the time a guy spends doing his taxes instead of watching TV at $25/hr.
You pay a lot more than that.
The nrst doesn't change the amount you pay for stuff, it just shows you how much of the price is tax.
Dream on. Better yet, try it on the Doctor and see what he thinks!
"Lower and Middle Income pay more." I suppose you dislike a flat tax for the same reason. Yeah, the liberals and socialists love the idea of soaking the 'rich' so that the 'little people' can get their fair share. After all, the 'rich' people are the ones who profit from our greedy capitalist system so, they should be soaked, right?
Well, here's something for you to ponder. Whether we switch to the NRST or the flat tax, I suspect I'd actually end up paying more than the ~7% income tax I pay today.
So, no, it's not that I stand to gain a lot from either of them. It's just that I believe the system we have now is morally wrong.
Under the Fair Tax the Income Tax and payroll taxes are eliminated.
That was the way most VAT plans were sold to the Europeans. The elimination part never happened. By the way, most VAT taxes can be reclaimed by foreign purchasers including tourists.
The system we have now is morally wrong!?
I am not sure what is 'idiocy' about it, but I was not talking about sales tax. When the drug dealer buys a $50,000 car under the income tax, it creates taxable income for a lot of people. The sales guy makes $3000 and has to pay income tax. The car dealership makes $8000 and has to pay tax on that. The guys that shipped the car and the guys that assembled the car and the car manufacturer made income too, and must pay tax. A legal sale under the income tax does not capture any federal sales tax, but captures income tax embedded in the car.
That's because the nrst doesn't tax any income.Let me show you an example:
One's entire tax burden is paid thru purchases at retail.
John makes $125, pays $25 in income taxes, and spends $100 on a prostitute. The prostitute pays no income tax or NRST on that $100.
Total revenue for the government = $25
John makes $125, pay no income tax, and spends $125 (prices go up for everyone) on a prostitute. The prostitute pays no income tax but pays $25 NRST when she spends the $125.It's a wash.
Total revenue for the government = $25
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