To all FairTax supporters.
I am trying to understand where the 20-25% embedded tax/cost of compliance comes from.
I have read a lot of documents on taxfoundation.com. I have seen numbers around $150 billion just for the compliance to the Income Tax. Obviously corporate income taxes and the corporate portion of the payroll tax will decrease expenses that each company pays. I also understand how the costs cascade up the line from raw material to retail purchase.
Like I mentioned earlier, if depreciation is a compliance cost, our company could get a $30 million benefit from the Fair Tax.
Can someone give me a link to where this research is spelled out so I don't have to do all this myself?
The only thing about depreciation that is a compliance costs is the time it takes to track it and to fill out any applicable IRS form.
Can someone give me a link to where this research is spelled out so I don't have to do all this myself?
Dr. Jorgenson formally of Harvard did a study of embedded costs in 1997 for the fair tax organization. This study is not available anywhere on the net. I assume the fair tax organization has it, but since they grossly misrepresent what Jorgenson is on record as saying, I highly doubt they will ever release it.
You should go get an accounting 101 book and learn what depreciation is. Until then you are making yourself look just a little less than Einstein.
"Can someone give me a link to where this research is spelled out so I don't have to do all this myself?"
http://www.fairtax.org