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To: Hostage
If you are referring to taxing your savings again when you spend them then you should know we've heard that tired AARP scare tactic many times before and it won't work. If you bothered to study the issue you would know that you are paying embedded federal taxes on every retail purchase so there is no way to get around paying federal taxes on purchases whether under the Income tax or the FairTax.

And the question every fairtaxer since the beginning of time fails to answer, if the employee is taking that money home in the form of a bigger paycheck, how does that reduce prices? It does not, those costs are still embedded in the cost of goods and the new tax will increase the costs of goods and services to the consumer.

148 posted on 08/27/2007 1:07:09 PM PDT by Always Right
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To: Always Right

As you have been told numerous times before, prices will drop because corporate and other taxes will be eliminated up and down the supply chain.

Payroll taxes may or may not be fully credited in an employee’s paycheck. If FICA withholding is credited but employer’s FICA withholding is retained, the employer has a means to lower prices and the employee sees a full paycheck.

The amount of the price decrease depends on the depth of the supply chain in manufacturing and services. Price lowering estimates presently run in a two sigma band of 11% t0 36%.

But this is the umpteenth time you have been lectured on this. You did not listen before, you will not listen now. So what’s the point of responding to you?

You have no data, you’ve done no research, you have only hot air. Who needs that?


165 posted on 08/27/2007 2:07:41 PM PDT by Hostage (Fred Thompson will be President.)
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