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University Economists review "FairTax"
Americans for FairTax ^ | current | University Economist listed in article

Posted on 11/02/2005 10:09:04 AM PST by Eaglewatcher

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To: Mojave
I guess you are not sufficiently gifted to see that if everyone were to pay green money cash out of their pockets that there will be downward pressure on taxes.

Do you see that withholding prevents many from perceiving the cost of government? Hello?

141 posted on 11/04/2005 5:45:42 AM PST by Principled
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To: Mojave
Please advise us all of what you think the "compliance cost" might be under the FairTax.

The spammers claim it would be nothing. Without evidence, of course.

Actually, you're wrong. Fair Tax proponents claim a reduction of 90% in compliance costs. There is ample evidence, should you want to see it.

Your problem is that you discount it before seeing it - likely because you don't have the ability to analyze it. There's nothing wrong with that. The stupid part is you making assertions based on your inability to analyze a piece of evidence.

142 posted on 11/04/2005 5:52:13 AM PST by Principled
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To: Mojave
The massive new national sales tax wouldn't come out his pocket?

Yes, it will. Yours too. Is that why you're having the tantrum?

And the "massive" national sales tax only replaces existing revenues- so today's taxes are "massive" too. Why no complaint - oh... you eveade today's taxes eh?

143 posted on 11/04/2005 5:55:29 AM PST by Principled
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To: Vinnie
Either I have to come up with a 30% down payment or I'm going to finance the sales tax.

You already finance amounts similar to the nrst in today's home and car prices (and everything else). Today's price inflation is the result of the costs of our income tax system... business income taxes, payroll taxes, compliance costs, etc.

THere will be no significant change in after-nrst prices. They'll be about where they are today.

144 posted on 11/04/2005 6:01:22 AM PST by Principled
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To: Principled
if everyone were to pay green money cash out of their pockets that there will be downward pressure on taxes.

Prices won't have the tax hidden as an inclusive part of the cost? That's the method the spammers use to disguise the real rate.

145 posted on 11/04/2005 6:04:44 AM PST by Mojave
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To: Vinnie
As I understand, lower income families will get a rebate check monthly from the government.

You have a misunderstanding. The nrst has nothing to do with income - only with spending.

The rebate check goes to any legal resident with a valid SSN who chooses to file for it. It is optional. It is not based on income, it is based on the amount of money spent on necesities for a family of a given size (similar to the wqay today's deductions work - but today's deductions are based on income - not spending - and filing today is not optional, it is mandatory).

I can get the rebate, if I choose to do so... and it will offset the money I spend on taxes paid on my necessities of life. You can get it, bill gates can get it.

Now, not everyone has the same level of necessity spending. But this is the best option IMO - it minimizes governemnt intrusion while providing a good way to eliminate tax on necessites.

146 posted on 11/04/2005 6:08:46 AM PST by Principled
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To: Principled
Today's price inflation is the result of the costs of our income tax system...

Are you trying to falsely imply that the new national sales taxes will cost us less? That isn't very principled.

"The tax reform plan we endorse is revenue neutral, collecting as much federal tax revenue as the current income tax code..."

147 posted on 11/04/2005 6:08:56 AM PST by Mojave
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To: Mojave
And no interest payment deductions.

And sales tax on the interest for the portion that is above the fed rate.

148 posted on 11/04/2005 6:09:22 AM PST by Always Right
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To: Principled
Actually, you're wrong. Fair Tax proponents claim a reduction of 90% in compliance costs. There is ample evidence, should you want to see it.

It is not like we haven't seen the faulty analysis a hundred times. The so-called compliance costs are mostly time and costs incurred by individuals preparing their own return. Nothing to do with cost of goods. Business reporting will not significantly change, so there is little savings that will show up in the cost of goods.

149 posted on 11/04/2005 6:13:22 AM PST by Always Right
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To: Mojave
Prices won't have the tax hidden as an inclusive part of the cost?

Tax will no longer be hidden in prices. Tax will be listed on the receipt and added to the amount due at the register. Some retailers may list prices including tax, others may list prices without tax. But both will have to put the amount of tax on the receipt.

You really don't know anything about the bill do you?

The amount of tax will be listed on the receipt. So when Joe buys a six pack, he'll have to cough up an extra buck for federal tax. And he'll have to open his wallet and pull it out to feed the beast.

Haven't you ever heard people say that eliminating withholding would lead to lower taxes?

They say this even though they don't propose spending cuts. How could eliminating withholding lead to lower taxes even if there are no spending cuts proposed???? The only difference would be monthly checks versus daily cash payments.

Keep spamming. This is phun.

150 posted on 11/04/2005 6:17:44 AM PST by Principled
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To: Mojave

Haven't you ever heard people say that eliminating withholding would lead to lower taxes?

They say this even though they don't propose spending cuts. How could eliminating withholding lead to lower taxes even if there are no spending cuts proposed????


151 posted on 11/04/2005 6:18:56 AM PST by Principled
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To: Always Right
And sales tax on the interest for the portion that is above the fed rate.

And in addition to a penalty on new housing, there will be a federal tax on adding a room to your old one.

152 posted on 11/04/2005 6:19:29 AM PST by Mojave
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To: Always Right
You are only including a portion of compliance costs. That you only see time filling out forms is what leads you to believe compliance costs are lower.

What about a company makes a decision to not make more money due to tax consequences? Do you see that as a cost? A la "i'm not gonna work OT for less than my regular pay". That type of planning I see as a cost. They could make more widgets, employ more people, pay more salaries, etc - but don't because the reward is not sufficient to induce the work.

153 posted on 11/04/2005 6:24:03 AM PST by Principled
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To: Principled
Some retailers may list prices including tax

No doubt. There goes your downward pressure assertion.

But both will have to put the amount of tax on the receipt.

Just like a pay stub. You're back to where you started.

154 posted on 11/04/2005 6:26:38 AM PST by Mojave
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To: Principled
Keep spamming. This is phun.

That should be the NRST slogan.

155 posted on 11/04/2005 6:28:06 AM PST by Mojave
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To: Principled
Haven't you ever heard people say that eliminating withholding would lead to lower taxes?

The sales tax would be a lump sum payment made once a year?

156 posted on 11/04/2005 6:30:21 AM PST by Mojave
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To: Principled
What about a company makes a decision to not make more money due to tax consequences? Do you see that as a cost?

You say this as if companies spend all their waking hours making decisions based on income tax consequences. Businesses do not try to make less money due to tax consequences. Businesses consider tax consequences in major decisioins, but there are dozens of criteria that are evaluated. Few decisions are made purely for income tax consequences.

157 posted on 11/04/2005 6:33:26 AM PST by Always Right
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To: Principled; Mojave; Always Right
Actually, you're wrong. Fair Tax proponents claim a reduction of 90% in compliance costs. There is ample evidence, should you want to see it.
What about the evidence of the compliance costs of sales taxes? Do you want to see some of that evidence?

In 1998, the Washington State Department of Revenue did a study on the compliance costs of their state sales taxes. The total cost weighted by dollars was 1.42% of the taxes collected. Half of the costs were credit card processing fees! (A business is charged a percentage to process credit card transactions - add sales tax to the transaction and the processing charge goes up.) And since the FairTax would be at least four times higher than the Washington State sales tax, the compliance costs could be ~3.8% of revenue collected. And for this 3.8% cost, the FairTax people would pay the retailer 0.25%! What a deal.

BTW, the the compliance costs hit small retailers particularly hard. The study concluded small businesses had a 6.47% compliance costs as a percentage of collections. Who knows what it would be with the dramatically higher FairTax rate.
158 posted on 11/04/2005 6:43:33 AM PST by Your Nightmare
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To: Principled
Some retailers may list prices including tax, others may list prices without tax. But both will have to put the amount of tax on the receipt.
Just curious. What price will state sales taxes be applied to?
159 posted on 11/04/2005 6:48:29 AM PST by Your Nightmare
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To: Your Nightmare
And for this 3.8% cost, the FairTax people would pay the retailer 0.25%!

Hidden compliance costs, hidden tax rates, hidden agendas.

160 posted on 11/04/2005 7:05:43 AM PST by Mojave
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