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To: SolidSupplySide

23% of GDP is a whole lot of money!

True, 23% of GDP may be a lot of money.

However neither Federal revenues, nor the FairTax is 23% of GDP. Both are lower than 23% of GDP.

A nice try as misdirection however.

9 posted on 12/16/2005 2:38:55 PM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer
However neither Federal revenues, nor the FairTax is 23% of GDP.

This is true. In recent years, federal revenues have be 21% of GDP.

See table 4

This is the amount that the FairTax is intended to generate. It is a little less than the 23% rate due to the quirky rebate scheme. (The rebate scheme serves no economic purpose. It exists only to make the rate progressive.)

Notice that in recent years that the federal share of GDP has decreased. That is the result of the Bush tax cuts. We are getting more revenue on a lower percentage because the economy has grown. FairTax proponents have not adjusted their claim to 21% of GDP. In effect, the adoption of the FairTax would be a tax increase over today's rates.

11 posted on 12/16/2005 2:50:54 PM PST by SolidSupplySide
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