Replies

"... Gale makes no claims about the presence of a tax component in price ..."

REALLY??? What's this comment by him, then, when on pgs 50-51 he says:

"... income taxes are “clearly incorporated in the price of goods that are bought and sold” ..."

Or perhaps you missed that little gem (along with others that don't fit your preconceived notions).

Your "LEGAL AVOIDANCE" diatribe makes little sense either since non-cash legal avoidance goes on today (and is also "not accounted for" using your circular reasoning). the fact that the illegal economy consisting of millions upon millions of (what should be) taxpayers evades taxes today where they would make significant "contributions" to tax revenue with the FairTax is one you'd no doubt like to avoid as shown by your side stepping, but you cannot. Like the elephant in the closet - it's there and you cannot explain it away by trying the diversion about "cash compensation in NIPA tables" and/or any conversions under either system. If the compensation shows in the NIPA tables it has presumably been reported (and in many cases taxed, no doubt) so claiming there is some sort of magical "conversion" that changes the balance to favor the income tax is truly folly.

There is certainly no reason to believe that legal avoidance will be any different under either tax system - your bloviating notwithstanding. The greater problem (financially and morally) by far is the one of tax evasion at present by the illegal economy and that is many, many billions greater under the present system where it will contribute many billions of tax revenue under the FairTax - thereby lowering the tax burden on the rest of us.

Further, your "... SCOFFLAWS ... BRAINDEAD ..." tirade is true idiocy since neither you nore Gale even begin to outline how such mass evasion under the FairTax could take place (nor why it would be more profitable that evasion presently - which is clearly at higher marginal rates). When you say:

"... Current consumption levels contain NO significant distortions from federal taxation ..."

... you present us with one of your LEAST-INFORMED quotes in many threads since clearly the federal coffers are greatly shrunken at present ("distorted") due to the income tax evasion by the illegal economy. Even you must surely recognoize that whether you'll admit it or not.