he has eliminated $87,845 out of his $1,000,000 business. Which is 8.8%. I allowed 10% being generous.So now his gross is $900,000 and he'll owe 23% of that to the Fairtax leaving him with $693,000 (not $900,000) net income...
His prices including the tax would have to be 17% MORE than before to break even....[29.87% + $900,000 = $1,168,830 gross]....$1,168.830 minus 23%(federal sales tax) = $900,000 net.
right, he can only save 10% max, so adding the 23% fair tax will make the bread $1.17 which was my exact calculation in the letter to Boortz/Linder.
The price of bread went up 17%. Which is ok for the people who got the take-home increase of 25% or thereabouts. But its not so good if you have accumulated wealth that just took a 17% or so dive.
HooooBoy ... more Looey-rithmetic!!