Posted on 08/27/2007 7:53:49 AM PDT by Turret Gunner A20
I’ve given this problem some thought, and it seems easy to fix. What would have to be done is that on the date of the changeover, say January 1, 2010, or whatever, if you had $100,000 in savings, stocks, etc., and the tax rate was pegged at 23% exclusive, you would be issued $23,000 worth of Fair Tax Vouchers, which could be used only to pay FT on future purchases. Thus, your $100,000 would still buy $100,000 worth of goods (or you could probably sell the vouchers at a discount and add that money to your investments).
bandaid for an amputation.
“... that he’s a lying sack of ...”
No, it isn’t a lie. The math would work with pay cuts where the old net is the new gross and all that is passed along in lower prices. But math isn’t the real world, and Karl was right when he said pay is “sticky”. People aren’t going to let anyone lower their gross pay.
Get business out of the tax schemes, watch prices fall by 10%, and let people buy stuff from their current gross paychecks.
How so?
My comment had nothing to do with inclusive vs. exclusive tax rates. I understand and agree that 23% FairTax rate is the apples-to-apples comparison to an income tax rate.
My comment had to do with the amount of retail prices that constitutes embedded tax costs. That figure only reaches 23% as Boortz claims, if you count the income taxes and payroll taxes withheld from the employee. That would leave people taking home the same net paycheck as today and buying stuff that cost the same as today after the FariTax was included. The problem is that Boortz is wrong if he thinks people only pay attention to their net paycheck and won’t mind their employers cutting their gross pay down to the current net. If that doesn’t happen, however, you won’t get a 23% price reduction. You’ll only get an ~10% price reduction from the business tax costs being removed.
Perhaps I misunderstood your original statements. You asked who would willingly “give back money” by lowering their price, and I said that strategy might net them more profit if they and their competitors were selling identical or interchangeable products (the definition of “product” to include the buying experience).
I thought your case in point of K-Mart, Macy’s etc., to be flawed and I pointed out why. They aren’t selling the same “product”. What were you trying to say that I missed?
no repeal of the income tax, no unfairtax. period.
I didn’t have to assume that to discuss an issue with the concept.
No, it isn’t a lie. The math would work with pay cuts where the old net is the new gross and all that is passed along in lower prices. But math isn’t the real world, and Karl was right when he said pay is “sticky”. People aren’t going to let anyone lower their gross pay.So Boortz says something he knows isn't going happen is going to happen and how is he not a liar?
Wrong.
Taxes are taxes, not wages or profits.
Read the book if you don't understand it.
The IRS says that approximately 16% of all wage earners NEVER file taxes. They simply do not pay income taxes.
Illegals do not pay income tax. Criminals do not pay income tax. The nonworking wealthy do not pay income tax.
Under the Fair Tax, everyone pays taxes. It is still proportionate because obviously people who make more spend more, thus paying more than those who spend less.
Read the book.
You th eone who really doesn't get it. Boortz was wrong in the book and even admitted such.
How so? Company A reduces its prices to sell more, Company B does not, wanting to keep the additional profits.
Where would you shop?
Fred Thompson is for the Fair Tax.
Insufficient. It leaves every American an accountant, and the IRS with its nose in our business. Neither is acceptable.
Not only that, but it leaves the feds capable of confiscating the property that you "own" if you do not give the King what he thinks he is owed, to be redisbursed to others as he sees fit.
now they send in the second string?
not true.
and the FTN’s blew any chance they ever had of swinging him their way.
“The point of regressive income taxes is to keep the unwashed filth that is you and I, is (1)To keep us working and paying taxes. (2) To keep us from acquiring real wealth and infiltrating those places where the wealthy like to inhabit....”
BINGO!BINGO! The harder they squeal the closer to home we’re gittin” folks!! The FairTax, Repeal the 17th...all drive at the core of the nations problems...
They are selling the same product, but have differentiated it in the mind of the customer. This is how you get more money for something, by letting the customer perceive greater value.
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