Posted on 05/14/2006 1:59:13 PM PDT by RobFromGa
It depends a great deal on several factors. First, is the $200k job a safe one, or is there a good chance it could disapear? Is it less stable than the lower paying job?
Second, how hard do I have to work at each of these jobs? Almost anyone can make more than they presently make if they are willing to work harder and longer.
Third, how much do things cost under each scenario. If things cost twice as much in the $200k job world compared with the $75k job world then there is no advantage to the higher take-home pay job.
$1,030B / $12T = 8.6% which is what prices should fall while maintaining current after-tax profit levels for all American businesses.Using the current high prices of gasoline coupled with RECORD high profits for the oil companies as my guide I would prepare for what is written and what I know. That is, there would be a 30% sales tax added to whatever the price is the day of implementation. If my competitors are of the Fairtax mind to lower their prices the amount of the income tax they would no longer pay, I'll be that much stronger in less than a months time.
There are a number of circumatances (which Kellis91789 and I have been through before) where prices would rise by the FULL amount of the tax ... gas prices are one (non-competetive markets in general) and certain imports without domestic competition (Flat Panel LCDs for instance.)
In short the 8.6% pre-tax drop is a BEST case and not likely to happen. Oh ... and a portion of that $200 B compliance cost is FairTaxable goods and services currently counted in the so-called "revenue neutral" tax base. The elimination of that portion of the base necessitates a higher FairTax rate to maintain "revenue netrality."
Not at all, sGlob, and we've been trhough this with you before including a link to a post that shows this to be not the story at all.
Present savings will pay taxes in the form of embedded taxes when used to buy presently plus any income tax laid upon such savings by Congress in the meantime due to constant tinkering which is quite easy under the present system.
With the FairTax there is no tax on income and any saved funds can be invested and increase tax free. they are only taxed when spent for consumption of taxable items - and not everything is taxed. In addition, the effective tax rate is less - in many cases much less - than the marginal FairTax rate due to the prebate.
Isn't is likely that we will end up with an income tax again on top of the FairTax when this all plays out?Most likely the first incremental, boil the frog step, would be the re-institution of the employer half of FICA and SE tax "to save Social Security".
Oh ... and a portion of that $200 B compliance cost is FairTaxable goods and services currently counted in the so-called "revenue neutral" tax base. The elimination of that portion of the base necessitates a higher FairTax rate to maintain "revenue netrality."Hence the 23% first year only teaser rate.
Yes, and only one of several reasons the advertised rate is too low:
- unacknowledged increases in state and local taxes to pay FairTax... to name a few others.
- entitlement autopilot increases
- government-taxes-itself shell game
- no accounting for evasion or avoidance
- predicted but unacknowledged decline in total personal consumption
- ...
MORE BEER!!! Oh Joy, Oh Rapture!!!
That must be a correct analysis - especially since the ones we've seen from the Squirrels always assume that corporate income taxes represent all business taxes (they don't) and that no part of income taxes embedded in prices will be removed (they will). In addition to the ER portion of withholding and compliance costs all of these things will combine to reduce prices substantially (prior to adding the FairTax).
The biased analyses that have been repeatedly offered by those opposing the FairTax are much to low in the price reduction area. Of course they can't admit that since it spoils their little game.
I find it pretty clear that disposable personal income will increase with the onset of the FairTax, not decrease, and in addition the economy will rapidly grow due to its other beneficial effects.
BRING ON THE BEER ... AND THE FAIRTAX!!!
Erroneous right down your list Dimp-Dimp.
You SQLers think up the most ignorant observations of "why" the FairTax rate is too low.
In fact, the actual revenue neutral rate right now would be about 19% rather than 23 - despite all your nonsensical observations.
I find it pretty clear that disposable personal income will increase with the onset of the FairTaxThat's odd you find that "clear" in the calculations you're reading when in kellis91789 own numbers he both reduces my personal gross income AND my disposable income while at the same time increased the prices to my customers.
And since I too would be a customer of someone elses services I don't find that excitable or inviting.BRING ON THE BEER
Perhaps too much beer in the slop this morning.
We all know your had "problems" with numbers Looey and that's obviously still continuing since you misunderstand what #71 says.
Got a church key I can borrow???
"... and if wishes were horses then balrogs would ride ..." but as it is they just throw up misinformation and fall flat on their faces.
Of course anecdotal analysis is weak, but enough of it gives an empirical weight rather than just theoretical assumptions. I wish each person that looks at the FairTax would run their own real-life numbers rather than buying into just logical arguments. I did ask lewislynn for specific numbers and he told me to go ahead without them.
But you didn't read lewislynn's claim that my example was refuting. He did not claim that he should get to keep his PIT and Employee-side payroll taxes [(EE/owner gets to keep PIT and EE FICA ... that's what the FairTax book told him anyway)]
He claimed he would need to increase his prices by 30% to maintain HIS PURCHASING POWER.
I allowed for a 10% price drop and you allowed for 8.6%, but I allowed lewislynn a full 20% increase in take-home, not the 18.7% that an 8.6% price drop affords. So using your 8.6% figure and 18.7% increase in take-home spendable income:
Under FairTax
[You're right, post your tax returns here then we'll talk about it.]
I think you skipped a beat. I point out that I asked for no personal information that could be tied back to an anonymous poster, and you turn around and suggest I post what I never requested you provide ?
What sort of substitute for logical thinking do you rely on ?
[... why did you arbitrarily choose to reduce my takehome from ...]
Do you even remember what you wrote that my post was a response to ?
You claimed you would need to charge your customer 30% more than current prices in order to maintain your purchasing power. You said NOTHING about getting the same formulaic benefits as an employee that relies entirely on wages, while the business owner has both a wage and profit component to his income.
If you are about to sputter that you don't have profits and it is all personal wages, then don't bother. From my standpoint, your wages are only the portion that you would have to pay an employee to perform those functions of managing the business.
[ ... and if the "basic rate" was 4% you'd pay an additional 30% tax on the remaining 6% earned...Yes there would be a sales tax on some interest earned AND or paid not to mention the new 30% tax on any bank fees.]
Where do you come up with this nonsense ? There are no taxes on earnings. Period. There is a FairTax on borrowing, not investment earnings.
Whether they do or not is beside the point.
That wasn't lewis' claim. He claimed he needed to charge his customers 30% more just to maintain his purchasing power. That simply isn't true.
Ping
The assumption was 'all other things being equal' would you refuse a job with that left you with higher purchasing power just because the taxes were higher ?
Clearly, nobody would so focus on the taxes that they would pass on the higher purchasing power. Yet that is what lewis was doing -- focusing on how much more taxes were collected and ignoring the purchasing power.
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