"None of the FairTax crowd can identify any such thing as embedded tax costs that are not income or payroll taxes..."
Sure we can. We have stated many times that the compliance costs of the current system are enormous and that they get imbedded, also. Can you explain why income and payroll taxes cannot legitimately be counted? Is that a rule that you just made up?
That's the problem, they are counted but fair taxers deny that they are. Dr. Jorgenson when he said prices will fall 22% when embedded taxes are removed, included taxes paid by employees. But fair taxer claim that prices will fall 22% AND employees will pocket all their taxes. That is contrary to what Dr. Jorgenson said, and in effect double counts $1 Trillion so it appears to be a huge windfall for employees.
Compliance costs are enormous, but are small as a percentage of our super-gargantuan economy. Like less than a percent. Most accounting functions have nothing to do with taxes and will be done anyway to operate the business.
Can you explain why income and payroll taxes cannot legitimately be counted? Is that a rule that you just made up?
I almost can't believe that you are asking this question, it shows such an utter lack of understanding of the main point we are discussing that I find it hard to believe that you aren't just pulling my leg. Do you really not understand where this "rule" came from? You might want to look at Fairtax Book page 111, Time For a Quick Review! to get the answer. Look for the part where the employees get the raise, because their income and payroll taxes are no longer siphoned off.
Or ask pigdog, he'll tell you that the employees keep all of their paychecks under FairTax so these are not going to save the business owner squat. Or just re-read my letter, I tried to explain it there.