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To: pigdog
... his example #393 ... shows ... what would be something like about a 15% hidden tax when ER payroll and compliance costs are included.
His example shows nothing of the sort ... you just made up that number like you do every time you talk about it. And, according to you, Payroll taxes are not "hidden taxes" because they are actually paid to the government and counted as ACTUAL taxes.

Take those out (take out any compliance costs, too) and the MOST prices drop is by the EXACT amount of the ACTUAL tax (and compliance cost) removed. There is NO "artificial price" inflation in his example (and certainly not in yours,) the prices are only higher than cost and profit by the ACTUAL AMOUNT OF THE TAXES PAID (and any compliance costs).

Because of that, aggregate prices across the economy can drop NO MORE than that ACTUAL total amount of tax removed: about $200 B of ACTUAL corporate profit tax, about $100 B of ACTUAL non-corporate profit tax, about $360 B of ACTUAL payroll tax, and about $160 B of ACTUAL compliance costs. Spread over a $11,000 B economy, that amounts to NO MORE than about 7% price drop potential. If ANY business keeps ANY portion of the savings, then the actual price drop is less ... likely no more than 5% average across price drop the economy.

Add back in the 30% FairTax, and Consumer Prices RISE by and average of almost 24%.

You have never demonstrated ONE PENNY of "artificial price inflation" from "hidden taxes" (or costs, or whatever else you call them when you're cornered.)

You can't point to ONE PENNY of cost in ANY example that is not an ACTUAL tax, an ACTUAL cost, or an ACTUAL profit. You've been repeatedly asked to show where the "hidden" amount is, and you refuse ... mostly because you can't ... precisely because it's not there.

538 posted on 03/03/2006 12:01:06 PM PST by Dimples
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To: Dimples

Read my 536 post. Did I read pigdog's example (post #323)correctly? Is pigdog saying there is a total of $65.44 profit in the supply chain on a $66.44 good.


539 posted on 03/03/2006 12:07:39 PM PST by Always Right
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To: Dimples
Ah, DImp-Dimp, but it IS there - and clearly so. The fact that you can't/won't admit it is your mental failing in adhering to your anti-FairTax agenda. It would ruin more than your whole day ... it trashes your entire argument set.

In an earlier post in this thread (that you've apparently not read) I show how the 15% approximation came to be - and then in a post on this thread also a bit later (which you also have apparently not read) I show how Nightie's intentional warping of his example which was no more real that mine (which never so claimed to be unlike his) caused a more likely hidden tax of upwards of 15% - perhaps even 20%. But of course your tawdry toady can't admit that even since it destroys the Squirrels nest so badly. Sorry if you don't like the numbers but after all, they're Nightie's, not mine. Go argue with him.

Perhaps you should make a practice of reading the threads before attacking them.

Oh, and BTW ER payroll taxes are the 7.65% borne by the employer and not the EE portion sent forth by the employee. And, certainly, the EE portion are not involved as hidden taxes - nor have I ever contended that they were. The ER portion is another kettle of fish and can certainly be counted with the business income taxes paid by the business which when added to a couple of percentage points of compliance costs gets you right up in the 15% range. Allowing for Nightie's warping of the data to suit his (and your) agenda the hidden tax would surely be over 15% and perhaps in the 20% range ... but of course we all know that his example is meaningless and even obscures the mechanism involved (which was no doubt his intent).

Your VAST economic numbers for your HALF-VAST ideas don't impress since you have continually disputed this point and shown that you have not the slightest understanding of what is involved and how it functions.

Perhaps you'd like to show us from Nightie's "real world" example how the amount of income tax paid is NOT passed on the the next level where it is cascaded because there are higher input costs solely due to the income tax component added in at the prior level. The hidden taxes are right there in my example AND in Nightie's. You are merely too intellectually dishonest to admit it - or perhaps you really ARE that ignorant of the real world.

And you may as well drop the idiocy of a 24% rise in prices due to the FairTax. Disposable personal income will probably be no lower than at present and quite probably even better. You blatant claim about prices rising is merely a scare tactic to attempt to make consumers feel impoverished somehow when that is quite the opposite of the truth.
553 posted on 03/03/2006 1:50:50 PM PST by pigdog
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