To: Toddsterpatriot
Well, lets see.. lets go with a small business, say a clothing store with $1,000,000 in sales per year. Now, the average clothing store has about a 5% net profit margin (inclusive;), so that'd be $50,000. That'd put them just in the 25% bracket, so that'd be 1.25% of their gross revenues. But, as we've said, the retail business's own income tax is only a small part of the embedded tax.
Do you really want me to dig up the Jorgenson study, or the Arduin, Laffer and Moore study?
69 posted on
07/01/2007 7:41:56 AM PDT by
The Pack Knight
(Duty, Honor, Country. Friend of Fred.)
To: The Pack Knight
For those keeping score, Dr. Dale Jorgenson, of Harvard, found in his study that retail prices would fall 22% after the abolition of the income tax and adoption of a consumption tax, assuming that all employees would keep their net, after tax income. Arduin, Laffer and Moore Economietrics, Inc. concluded that prices would fall 11.25%, assuming that all employees kept their gross before tax income.
The truth is it would probably fall somewhere between the two. It's hard to see the average American losing at either extreme. I'll keep looking for links to both studies, if available online.
75 posted on
07/01/2007 7:56:52 AM PDT by
The Pack Knight
(Duty, Honor, Country. Friend of Fred.)
To: The Pack Knight
That'd put them just in the 25% bracket, so that'd be 1.25% of their gross revenues.Excellent!
But, as we've said, the retail business's own income tax is only a small part of the embedded tax.
Okay. Payroll is what % of sales? Multiply that by 7.65%, what do you get?
76 posted on
07/01/2007 7:58:55 AM PDT by
Toddsterpatriot
(Why are protectionists, FR Conspiracy Theorists and goldbugs so dumb?)
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