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To: Filo
23% is way, way too high.

They actually add 30% sales tax. 23% is what they call an 'inclusive tax rate'. On a $100 item, they add $30 of tax. They come up with 23% by dividing the $30 tax by final cost $130. It's FairTax Deception 101.

5 posted on 04/18/2006 10:41:24 AM PDT by Always Right
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To: Always Right
Your point is well taken, but nonetheless moot.

Neither FairTax nor Flat Tax, or any other meaningful tax reform, will occur in either of our lifetimes. This is just populist drivel for the sheeple.

The current tax industry and its benefactors are far too entrenched and powerful to allow such sweeping change.

10 posted on 04/18/2006 10:47:43 AM PDT by liberty_lvr (Those who stand for nothing fall for anything.)
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To: Always Right

Agree with you but on any $100 item you're probably paying $23 in hidden taxes that are being passed on to the consumer now.


11 posted on 04/18/2006 10:48:07 AM PDT by hubbubhubbub
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To: Always Right

The amount of tax is the same no watter if it's expressed as an inclusive or exclusive tax amount. The anti-FairTax crowd (of which Rightie is a rock-solid member) likes to use only the higher tax exclusive number to fool people into thinking that somehow using the tax inclusive amount is dishonest or somehow represents a lower amount that the tax actually might be.

Either number is correct so long as it is expressed properly but talking about one to the exclusion of the other is certainly meaningless. The FairTax uses tax inclusive in the bill since it allows one to compare tax rates on the same basis as the income tax (which is also tax inclusive - meaning that a 23% FairTax rate is the same as a 23% income tax rate) and in addition the receipt required to be given the buyer also specifies use of the tax inclusive rate to show the amount of tax paid on a particular purchase.

The FairTax website explains the tax both ways to point out that the aamount of tax involved is the same.

There is no "deception" except by posters such as Rightie who is emotionally attached to the income tax and can conceive of nothing else in his lifetime.


49 posted on 04/18/2006 12:44:08 PM PDT by pigdog
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