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To: x5452
Money seems to have amnesia about the amount of taxes businesses pay for having employees. If you figure the book has bad math, Money just did them one better with lazy math.

Oddly, the math flaw was confirmed by the fair taxer researcher who came up with the 22% embedded taxes, Dr. Jorgenson. Boorts and Linder also agreed there was a flaw, and Boortz said he would correct it in later editions. I have done the math many times, it is flawed.

14 posted on 09/08/2005 5:06:18 AM PDT by Always Right
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To: Always Right

I was refering to the Money allegation that in order to cheapen the price of bringing goods to market they'd need to drastically cut wages.

This fails to acknowledge the 'true cost' of having employees.

The employee salary is only a piece of what the company pays. The company also pays several taxes just for the privelege of having employees, these taxes presumably would be removed when a fair tax was levied, thus employee paychecks would already lighten considerably, around 20%; the employer would already see a massive savings per employee.


72 posted on 09/08/2005 7:54:19 AM PDT by x5452
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To: Always Right

Well, no AR, THAT"S not what the economist Jorgenson confirmed at all ... and you Status Quo Lover guys have been misrepresenting it ever since.

Why don't you post Boortz's claim that there was such an error for us to inspect. Your "doing the math" doesn't impress.

None of ou Squitrrels are even willing to admit there is such a thing as taxes embedded in prices that will be removed when the FairTax becomes law, but merely pretend that wages must fall - which is not true. Wages go up, not dowwn.

And as for Nightie's scare headline, that's just more hyperbole - which is right down the alley you guys play in.


114 posted on 09/10/2005 1:35:48 PM PDT by pigdog
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