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To: Dimples
"... TAX, at any level, HAS NOTHING TO DO WITH INPUT COST !!!!! ..."

Actually Dimp-Dimp, one of your dumber statements. You are basically saying that taxes are not passed on in the form of costs to the next level. Nonsense!

" YOU KEEP INSISTING THERE ARE OTHER COSTS in the equations ... costs that NO ONE, NOT EVEN YOU have been able to identify or quantify ... costs that add NO MORE to the price of a product than the ACTUAL TAXES (and compliance costs) PAID do."

Even more nonsense. You merely persist in trying to put words in my mouth. What I have said (if you stop misstating my example) is that the taxes cascade and embed at each level and compound when passed to the next level. The example also clearly shows that these compounded, embedded taxes are the ones that appear as "tax costs as % of sell price" in the example and which can be removed with the onset of the FairTax (in addition to other costs).

These other costs are things like compliance costs and the ER portion of payroll taxes perhaps but unlike you I've never tried to say they will be x% but have used your own assessments for them. They are certainly additional costs over and above the cascaded income taxes.

Since you don't like my estimate of 15% on Nightie's example why don't you adjust the "real world" example to not have the bias it does and tell us what the percentage is (if not about 15). Be sure to double the profit margin since that doubled one is what he has claimed is "real" (but only used one half that high) and also drop out a couple of he marginal businesses he included so that the percentage of marginal businesses represent the same fraction in the chart he claimed was "real". He has 3 times as many marginal businesses. Do those things, Dimp-Dimp, and tell us what your "real world" number might be.

562 posted on 03/03/2006 3:55:19 PM PST by pigdog
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To: pigdog
You are basically saying that taxes are not passed on in the form of costs to the next level.
No, that is NOT what I'm basically saying (weren't you just accusing ME of putting words in your mouth?) Tax is NOT calculated on the the amount of INPUT cost; it's calculated on the amount of PROFIT! For the SAME input cost, profit can be ANY amount (negative, zero, or positive!) the tax is calculated on the PROFIT amount REGARDLESS of what the input cost is or what components are embedded in it.

NONE of you examples show even a single PENNY of a cascaded amount. If they did, you'd have quantified that amount by now just to prove how much cascading adds to the ACTUAL tax paid. You haven't, because you CAN't, because THERE ISN'T ANY "cascaded" AMOUNT!!!

567 posted on 03/03/2006 4:28:19 PM PST by Dimples
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