You are the one, nightie, who was trying to somehow equate the FairTax rate as "having somehing to do" with the marginal income tax rates. You were attempting this in the post I'm replying to right now. That was not the point as you know full well.
Nor will your "stunt" work of pretending the income tax rate does not matter and that there is no evasion while at the same time pretending that the FairTax rate is so high as to trigger massive evasion. That's simply not true. The relevant points are the gains due to evasion by anyone under the present system as compared to gains under the FairTax.
The IT system has higher marginal rates than the FairTax even including the probable state sales tax rate. In addition, just the withholding taxes at 15.3% t-i (or 18.06% t-e to use your t-e comparisons). Adding on the 7% t-e state sales tax you tried to add to only one side (the FairtTax side - imagine that) of the calculation, you'd end up with 42.71% t-e at a 15% (17.65% t-e) marginal IT rate. That's a lot more than under the FairTax with the probable state sales tax rate and in fact, the 15% marginal IT rate is probably at least 20% (25% t-e) so that the truly comparative rates would easily be over 45% (50.06% t-e in fact) IT vs 33% FairTax.
"The FairTax rate has absolutely nothing to do with marginal income tax rates or income tax evasion/avoidance." Certainly the FairTax rate has absolutely nothing to do with marginal income tax RATES (in that it does in no way determine them), but the last phrase in that sentence when used correctly from a grammatical standpoint is a flat lie. The FairTax rate and the income tax rate and the comparison of them have everything to do with evasion.
The obvious point being that 45% (which we showed is over 50% remember) is MUCH greater than 33% and anyone with half a brain (eliminates you I guess) would realize there was a bigger incentive with evading the 17+% higher IT rate ... in other words, the present IT system is more likely to incentivize evasion than the FairTax.
Services are certainly no more difficult to tax than products and evasion is neither easier or harder - but let's keep in mind the evasion under the IT of services which is exactly comparable to the FairTax (except that with the IT, the evasion gains the evader more bux than with the lower-rate FairTax; 50+% vs 33%, remember). Or perhaps you'd like to lie and say there is no evasion with services under the IT?
Claiming that, somehow, under the FairTax evasion is vastly increased for either products or services is ludicrous and makes you look like the dolt you are. There will be evasion under any tax system and the amount is greatly governed by how much the evader stands to gain under the particular tax system and the safety he perceives in evading and has nothing at all to do with your lovely (and inapplicable) "expenditures" digression.
With less to gain under the FairTax and with the ability to concentrate more collection resources on a smaller number of taxpayers, an evader would have to be an utter fool to think the FairTax is "better" for him --- it ain't; just the opposite. Go ask your dad.
What did I tell you about long posts to me? Get it down to a couple of paragraphs and I'll read it.
an evader would have to be an utter fool to think the FairTax is "better" for him
That is obvious in looking over past replies through many tax related theads including those of tax protestors.
Have yet to see ardent TP'rs claim anything other than an NRST will be Amegeddon and the end of the world.
With less to gain under the FairTax and with the ability to concentrate more collection resources on a smaller number of taxpayers, an evader would have to be an utter fool to think the FairTax is "better" for himI have a service business and the fairtax would be a huge gain for me should I choose to evade the tax. First of all initially I would have to RAISE my rate the amount of the tax just to break even, that would be a 30% (not 23%) increase in my gross. Me, the business owner being required by law to give a receipt to everyone who is NOT required to keep them or even allowed to write off my expense would be a HUGE incentive for services to evade the fairtax...I have to give a receipt to everyone who has no use for one..BFD!
What were you thinking Lapdog?