An example which illustrates a "mechanism" that nets ZERO change in the price structure due to anything called "cascading." Disagree?? then show us HOW MUCH cascading affects the price!
So far, 1.5% of of the price is ACTUAL COST and 98.5% of the price is ACTUAL PROFIT ... let's see, that's totals 100% of the price ... ACTUAL TAXES come out of ACTUAL PROFITS and represent 34.4% of ACTUAL PROFITS and 33.88% of the price.
WHERE is any "hidden tax" -- you know, that "hidden tax" that is not actual tax? (Hint: there is none)
WHERE is any "cascading" -- you know, that "cascading" that makes the price go up MORE than that actual tax does? (Hint: there is none)
I've explained that to you before Dimp-Dimp - several times in fact. You merely refuse to understand it and instead insist that there is no tax cascading. If you weren't so vehemently anti-FairTax you could use the example to understand what's involved instead of misstating it to suit your own purposes.
Keep in mind Dimp-Dimp that originally you Squirrels were arguing that taxes did not appear in prices at all and that elimating them would not lower prices; then later you modified this to say that their removal would "not noticeably" (or words to that effect) lower prices; and you're now beginning to morph into "just a few percentage points" of price lowering; and perhaps eventually "by the amount of taxes removed".
What is one to think with such a constantly-shifting position? Obviously the rational understanding would be that you are not to be believed, and I think that's where you guys have placed yourselves by your irrational and always-changing arguments.
Since I've been over this ground with you several times in the past it's not worth my trouble to continue revisiting it since I know you're not searching for elucidation but only some way to discredit anything you can about the FairTax and its economic effects. The so-called "hints" you give merely illustrate your lack of understanding and your desire to misstate things.
The higher prices caused by embedded taxes are not taxes paid by the purchaser, ----but a higher price than he might have otherwise paid--- due to the seller's having had his costs raised by embedded taxes. The seller would already have borne this higher price in his incoming cost of goods. The portion of this higher price due to embedded taxes in the $100 example might be, say, $10 or $20. The profit on this higher amount using a 25% seller's margin would be something like (using the higher $20 amount) $20 x 0.25 = $5. The tax on this $5 would be something like $5 x 0.15 = $0.75 in tax "contribution" from the underground economy due to embedded taxes (or perhaps $3.75 optimistically in the buyer's favor in viewing the whole transaction) instead of $100 x 0.23 = $23.00 under the FairTax.So presently when the underground economy makes a purchase they, as if by magic, don't pay any hidden/embedded taxes which aren't really taxes just higher prices as a result of embedded taxes, which aren't really taxes just higher prices as a result of embedded taxes, which aren't really taxes just higher prices as a result of embedded taxes.In view of that, Looey, it's fair to say that the present system basically does not tax the underground economy due to embedded taxes since the FairTax obtains about 30 times more revenue on the same transaction than the embedded tax contribution under the income tax.