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To: RobFromGa

Assuming, for the sake of your argument, that prices don't come down (not conceding, just making a point). Would you concede that consumers are going to have more money in their pockets from no withholding, or no tax deposits to make? Also, even YN, I believe, has said that prices might come down 10% or so (might have been someone else. Sorry in advance if that wasn't you, YN) How, then, are we going to be screwed? Prices coming down is just icing on the cake.


323 posted on 08/16/2005 2:06:36 PM PDT by rwrcpa1 (April 15. Let's make it just another day.)
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To: rwrcpa1
Assuming, for the sake of your argument, that prices don't come down (not conceding, just making a point). Would you concede that consumers are going to have more money in their pockets from no withholding, or no tax deposits to make?

You know, I would love to discuss whether it is better to pay 20% more for every new purchase at retail, while paying no income taxes or FICA. That would be an interesting discussion. But, this discussion right now is about the hard-to-believe assumption of the FairTax proponents who claim prices will be the same and we'll all have more money because of no income tax.

If they are lying about the massive price drop the week after the Fair Tax is enacted, how good are their other guesses.

Re: if prices went up by say 15% inclusive of the Fair Tax, then the biggest losers are senior citizens living above the poverty level who have paid the taxes on the income and saved and now would have to pay with alreadytaxed dollars that buy 20% less stuff. That's why they can't agree that prices might go up,

331 posted on 08/16/2005 2:33:07 PM PDT by RobFromGa (Afghanistan, Iraq, Iran-- what are we waiting for?)
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To: rwrcpa1
Assuming, for the sake of your argument, that prices don't come down (not conceding, just making a point). Would you concede that consumers are going to have more money in their pockets from no withholding, or no tax deposits to make? Also, even YN, I believe, has said that prices might come down 10% or so (might have been someone else. Sorry in advance if that wasn't you, YN) How, then, are we going to be screwed? Prices coming down is just icing on the cake.
I said the only amount they could go down was the total of business income tax, the employer share of the payroll tax, and the difference in compliance costs between the current system and the FairTax. That would be much less than 10% of all the products and services purchased in the US.

There are long term macroeconomic effects on prices and wages that could occur with any consumption tax, including the Flat Tax.
332 posted on 08/16/2005 2:37:10 PM PDT by Your Nightmare
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