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To: pigdog
Wow, I didn't think even YOU could blow an example that badly:

Your Spendable Income Tax income of $24,644 it AFTER taxes. Your Spendable FairTax income of $25,944 is BEFORE taxes.

After you pay FairTax from your $25,944 you're left with $19,976 of after-tax purchasing power.

That yields a net DECREASE in real purchasing power of nearly 19% !!! Even the 10% decrease is more than a net 14% loss.

You should proofread before you post.

352 posted on 01/30/2006 5:08:56 PM PST by Dimples
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To: Dimples
Yes, it's my error in using FairTax income and not accounting for taxes since the income tax side does. I'll correct that but even with my error your current analysis is not correct either as I'll demonstrate later on in the thread.

In addition you haven't responded to the fact that you have intentionally biased the example both by using a full S/S 2-person benefit for one person and by using a 5% price increase when the true increase is undoubtedly more than that. There has never been a rational analysis that I'm aware of showing anything as low as 5% of taxes embedded in prices. Nor are your claims to the contrary sufficient to sway anyone. If you'd agree to, say, a more reasonable 15% in embedded taxes then I'll play your silly little biased geme with you. Even then, that may be low but claiming only 5% is beyond the pale.

Moreover the biased example you've chosen is for someone about 275% of the poverty level - so he's relatively comfortable and hardly representative. Any lowering of the embedded tax rate he pays benefits him greatly while cutting the recipient quantity to 1 rather than 2 also helps him dramatically when compared to the FairTax example given on their website. Perhaps you should have taken an example of a single guy on S/S and nontaxable pension at an income rate of $50,000 or $100,000. That might be too obvious a loaded example for you to pass off in your mind though and is probably why you chose as you did.

In addition since your example is relatively well-to-do he is probably not going to be consuming all the money but saving a good bit of it. After all, your example claims almost no taxes anyway at 5% so why not savea goodly amount?

358 posted on 01/30/2006 7:26:45 PM PST by pigdog
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