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To: pigdog
Also note that in his letter to Linder the poster fails to figure in the effects of the prebate which ALSO helps the wage-earners

Yep, you're right, more FREE MONEY in this plan in case an increase of 25% in purchasing power isn't enough of a giveaway. There are so many problems with this pollyanna plan that I couldn't fit them all into one letter.

They probably won't respond but maybe one or both of them will think about what they are claiming and realize they need to tone back their promises.

26 posted on 08/22/2005 8:42:17 PM PDT by RobFromGa (Afghanistan, Iraq, Iran-- what are we waiting for?)
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To: RobFromGa
The prebate is nothing like "FREE MONEY". Why do you continue your economic ingorance in that fashion (too)?

You seem to be a small business owner who has a "good thing" (in your view) going with the present tax system and oppose any change - despite your nonsense statements to the contrary from time to time. It's clear you're one of the SQL crowd since you're really defending the Status Quo.

Your letter to Linder/Boortz or Boortz/Linder or Linder or Boortz is merely a vanity ploy in your eyes and makes very little sense. It's certainly a good thing you're a single, small businessman since you'd quickly trash one of any size.

And you - or your compatriots Nightie, s-test, etc. do not understand the mechanism of cascading tax costs and are more than willing to go around misstating facts relating the both that and the FairTax in general. It's called the Chicken Little approach to try to scare unsuspecting people who are unknowledgeable in tax systems by feeding them misinformation hyped mercilessly by your crowd to be something it is not - valid information.

The cascading mechanism is clearly shown with a simple example and it is not only for C-corporations as you keep proffering, but to businesses (period):

	LEVEL   	1	2	3	4	5	6
                	$1.00	$1.41	$2.00	$2.82	$3.98	$5.62
33.00%	PROFIT MARGIN	$0.33	$0.47	$0.66	$0.93	$1.31	$1.86
25.00%	TAX COSTS	$0.08	$0.12	$0.16	$0.23	$0.33	$0.46
	SELL PRICE	$1.41	$2.00	$2.82	$3.98	$5.62	$7.94
Accumulated tax costs	$0.08	$0.20	$0.36	$0.60	$0.92	$1.39
Tax costs as % of 	5.84%	9.98%	12.90%	14.98%	16.44%	17.48%
   sell price

The fact that you pay taxes from your business as personal income taxes on a 1040 does not matter; those taxes still figure in to your business and the cascading still applies. You can dredge up all the figures you wish about what your "business" does and does not pay and any expenses it does or does not have - after all who can argue since it is, after all, your solely-operated business. It would take the IRS to break it apart and see what all "inconsistencies" there might be. That certainly means nothing in the big scheme of things as I think most people would realize.

Pretending, as the Squirrel squad does, that only Subchapter C corporations pay taxes that "count" for economic purposes with he FairTax is utter nonsense and graphically illustrates your shortcomings in economic understanding.

More than that your are overwhelmed by your own selfish (and incorrect) interests in the effects of the FairTax on your busines as well as in the benefits it offers the economy (and taxpayers) as a whole. Even this vanity post of yours illustrates your narcissistic attitude - you think it's all about YOU!!! Got news for you, pal - it's not about you at all, but about our country and how to best help it economically (your thrashings and railings notwithstanding).

A lot of people (including you) do not understand that cascaded tax costs are a real thing and affect prices right now in everything one might buy (and there is no option of not paying the tax when you purchase). That's why those with existing savings accounts will be hit with the additional equivalent of a tax in the form of embedded tax costs that run something like 20-25% of the price of everything they buy and will be no worse off under thr FairTax. YOU may not wish to admit this (or your Squirrel buddies) - in fact, you can't - but most economists certainly are aware of the mechanism. You can argue about whether it's 10, 20, or 50% ... but it's there and boosts prices right across the board.

So you might as well stop your Chicken Little economics since you're obviously not well equipped for that academically.

88 posted on 08/23/2005 9:34:48 AM PDT by pigdog
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