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To: Always Right
If a state has 100 employees and pay them $1 billion, under the sales tax they will now have to come up with $1.3 billion to keep the same number of employees?

Show me where in the Fair Tax bill that employers have to pay the sales tax on employees salaries.

If you can not, admit you are lying.

394 posted on 06/10/2005 8:48:05 PM PDT by Phantom Lord (Advantages are taken, not handed out)
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To: Phantom Lord

From the Sale Tax Bill:


`SEC. 703. GOVERNMENT PURCHASES.

`(a) Government Purchases-

`(1) PURCHASES BY THE FEDERAL GOVERNMENT- Purchases by the Federal Government of taxable property and services shall be subject to the tax imposed by section 101.

`(2) PURCHASE BY STATE GOVERNMENTS AND THEIR POLITICAL SUBDIVISIONS- Purchases by State governments and their political subdivisions of taxable property and services shall be subject to the tax imposed by section 101.

.....
The government is viewed as the end consumer, so items they pay for including services (employees) are subject to sales tax.


409 posted on 06/11/2005 4:51:29 AM PDT by Always Right
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