For a 9% drop to occur, each component in your example would have to drop 9%.
And in a service business (one stage), tax costs are higher.
Right, every other scenario would have less than a 9% cost reduction like I said.
See, the thing is that only labor is taxed under the present system, and some corporate profits to a a lesser extent. And the amount of tax that is going to be eliminated through all the chains of production is going to be that component of domestic labor called the Employer half of MM/S.
So, you can look at any product and trace it all the way back down to when it came out of the ground or when the labor was performed, and there will be some component of that cost that was attributable to some domestic laborer getting paid wages to do work. And that is the area that will get to save money under the nrst-- and it is 7.65% of whatever part of that product was made up of labor.
if there was a lot of labor, then there will be at most 7.65% that can be removed in total from the cost. Then there is a relatively negligible amount of compliance savings, and some coporate taxes which are paid as a percentage of some of the profits at each stage of the production.
If that totals up
For a 9% drop to occur, each component in your example would have to drop 9%.Huh? See I told you, simple logic confuses them.---
We're talking about whether or not a savings of 9% at each stage of production leads to a total savings of a higher percentage. It does.
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