A producer of products must pay a certain amount to produce that product. A company that resells a product must first buy that product from the producer, and of course pay whatever the producer charges for the product. That is the raw cost of that product. Before the company marks that product up, they must first determine how much markup they must get in order to profit from the sale of the product. The determining factors are overhead (rent, electricity, shipping, wages, etc.) and the taxes that the government charges the company.
Companies do not pay income taxes. They merely collect them from the consumer. This is so because the company merely adds the cost of the tax to the final price of the product. Companies have accountants that can figure very closely what their tax liability is going to be. The average amount of embedded taxes in a product works out to approximately 23%.
Now, the fair tax eliminates the taxes that the company would otherwise pay, and replaces it with a 23% sales tax (approximately). So, the company lowers its price by 23%, but it is added back on at the register through a sales tax. The end result is the same price. If the company doesn't lower the price buy 23% so that the end price is the same, another company will.
The company is making the same profit per unit sold, because the 23% tax is not being added before the sale, but after the sale. I really don't understand why you don't understand this.
Now, as to this talk about wage reduction. The company pays an employee X amount of dollars. The income taxes withheld by the company are paid to the government. In no way do they affect what the company makes. Therefore, there is no justification for claiming that wage reductions will be necessary. If a company is paying me 20 bucks an hour, that's what they pay me. What they have to take out and give to the government has nothing to do with them. In fact, the Fair tax will save them a shit load of paperwork.
Now you can continue to call me a fool, or you can debate seriously. The facts are on my side. Additional taxes will be picked up when foreigners shop in America. The IRS will be eliminated. The price of products will stay essentially the same. The cost of tax paperwork will be eliminated. A monthly rebate check will come to each taxpayer for the basic necessities of life. This deal is a winner. I am afraid that it is you who fail to understand that this system puts an end to punishing the productive citizens. It will unleash an economic boom the likes of which this nation hasn't seen in years. Those are the facts.
I actually am in business for more than 20 yrs and you're telling me how it's done? You're only parrotting what someone else said and you even got that wrong...
If you don't like the riducule then stop making a fool of yourself by pretending to know what you're talking about...you don't..
If you're stupid enough to believe you've won the argument by being shown how wrong you are then so be it.
Get it?