I disagree Dimples - Respectfully.
Though Jorgensen has either changed or fine tuned his 22 to 25% drop to include a wage or salary drop. Others at least at Fair Tax including Dr. Walby have not.
The American Farm Bureau Federation supports the efforts of the Fair Tax as well.
A conservative 10% price drop does not mean a wage drop in take home pay. it does means the employer saves the 7.65% employer paid payroll tax and it does mean the employee keeps tohe 7.65% payroll tax normally dedcuted form his gross pay.
So, $129 is the new gross that come home versus the $100 in take home pay under the old system.
And a 10% drop takes those $100 woth of product down to $90 and add in the Fair tax they now pay $117.
THey are $12 dollars ahead(per $100 in take home pay under the income and payroll tax) and we haven't accounted for the Prebate yet!!!!!
Think about it, if you could eliminate 7.65% payroll tax paid by the employer(not part of gross salary) and eliminate the coroporate income tax; and eliminate 80 to 90% of the economically wasted 250 to 400 billion in compliance costs. Plus pump in to the economy increaed investment and growth because of the more efficient tax system. The result is booming economic growth and job creation.
Now multiply the savings
throughout the supply chain from producer of seed and fertilizer to the farmer to the grain mill to the baker to the grocery store.
Most of these people paid business income taxes and payroll tax; most paid accountants and tax attorneys to keep them compliant with the code. inefficient busineess decisions were made because of the tax code. etc. etc,.
10% price drop is conservative and reasonable expectation just to most businessmen let alone economists.
Public will expect it when the Fair Tax is passed and will punish those companies and sellers that do not lower prices. This will be a driving force to get the 10% savings.
The idea that a wage drop is required for a 10% price drop in the supply chain is false.
Others at least at Fair Tax including Dr. Walby have not.Have you asked her? I bet she base her opinions on a misunderstanding/misrepresentation of Jorgenson's work. Why don't we compose an email and ask her what she thinks would be the price/wage response to the FairTax.
The American Farm Bureau Federation supports the efforts of the Fair Tax as well.And the National Retail Federation and the National Association of Retailers don't. So what?
The idea that a wage drop is required for a 10% price drop in the supply chain is false.First it was 23%, now it's 10%. Why don't you just admit you don't have any idea if or how much prices might drop under the FairTax.
...Think about it, if you could eliminate 7.65% payroll tax paid by the employer(not part of gross salary) and eliminate the corporate income tax; and eliminate 80 to 90% of the economically wasted 250 to 400 billion in compliance costs...
Well, that would get you to about 8% ONLY IF 100% of those amounts were applied to price reduction. THAT WILL NOT HAPPEN!
You have to realize that the roughly $900 Billion you are talking about is spread over about $11,000 Billion of GDP. And ANY business that retains even a part of the payroll or profit tax reduces that 8% to a smaller number. Wishing it were larger doesn't make it so.
... 10% price drop is conservative and reasonable expectation just to most businessmen let alone economists. ...
Again, you're playing in fantasy land. The numbers just don't add up. Your opinions and expectations don't jive with the numbers.
The idea that a wage drop is required for a 10% price drop in the supply chain is false.
Then you clearly don't understand Jorgenson's study; and there appears to be no other study to confirm your opinion on this ... and the numbers from the real economy are not in your favor.
$129 is the new gross that come home versus the $100 in take home pay under the old system.
For ALL taxpayers grossing under $90K (the FICA limit) their total Federal Tax burden (income AND payroll) is less than 20% of gross. For those under $50K, the total Federal Tax burden is under 15%. NO ONE, not even those grossing in excess of $250K pays a total Federal Tax burden of 29%.
The American Farm Bureau Federation supports the efforts of the Fair Tax as well.I don't know if I'm supposed to be impressed or afraid that a representative of the largest, heaviest tax subsidized industry in the nation is coming out in favor of a new tax plan.
The idea that a wage drop is required for a 10% price drop in the supply chain is false.Yea taxes is the only reason why company's outsource labor or make purcases from the "supply chain" offshore. < /sarcasm >
A year ago or less, you would have been lambasted by Fairtax supporters for suggesting only 10% price drops...now for some reason it's OK.
Though Jorgensen has either changed or fine tuned his 22 to 25% drop to include a wage or salary drop.No he didn't. He's standing by his exact words.
Others at least at Fair Tax including Dr. Walby have not.You don't say?...based on what?