Services presently add their payroll taxes and income taxes, personal and business to their cost structure, as well as those passed on from their suppliers and contractors.
When we pay for services we are paying these embedded taxes but they are not listed or broken down, they are not visible to us.
The FairTax ***replaces*** these taxes that we do not presently see.
So when you say the NRST will tax services which are not taxed now, you are mistating it.
The correct statement is:
“... from watching c-span this NRST aka fair tax will also tax SERVICES which are not taxed EXPLICITLY now.”
But keep in mind the FairTax only applies to the consumer, not the business itself. For example, a builder will not pay the NRST to his lumber supplier, the lumber supplier will not pay an NRST to the lumber transport provider or the lumber mill, etc.
The FairTax rolls all the federal embedded taxes up into one retail level tax. It does not relieve anyone from having to pay taxes, it merely changes the process of tax collection, to make it more efficient, less intrusive, less prone to abuse or manipulation. It also enables American manufacturing to be more competitive overseas where there is no NRST.
The only shock imposed by the FairTax is that it will make hidden federal taxation visible to the consumer for the first time since 1913. Even when price stability is established and the amount of purchases are the same, the consumer will see federal taxation at every purchase. This will be a reoccurring reminder to the electorate of the level of federal taxation.
again the fair tax SCREWS the service industry.
It turns small companies into tax collectors.
Thanks but your points make me even more certain I do now want the NATIONAL SALES TAX (aka Fair Tax scam) anywhere near my business.
The BUSINESS is going to have to hold this money, the business will have to pay this money out to the government.
This is no different than stores that have to collect sales taxes, or gas stations which has to deposit gas taxes. This is ON TOP OF LOCAL TAXES!!!!! (Lets not even discuss all the loss of internet sales to us locations. given the flight from US businesses)
MORE PAPERWORK FOR BUSINESSES?
Are these people INSANE to pay 20 MILLION DOLLARS to produce this snake oil!
I was really on the fence with this, did not pay attention but DAMN!!
It DESTROYS all previous financial planning.
It GIVES US MORE BUREACRATS intruding in our lives.
It institutionalizes “where did you buy that” taxation when you buy from taxfree havens.
It taxes the service industry.
It cripples US internet sales.
It creates a NEW ENTITLEMENT WITH THE PRE-BATE!!!! (that is the MOST BONEHEAD snake oil part)
Fair Tax= Snake Oil. There is NOTHING FAIR about this SCAM to put in a national sales tax.
THANKS for convincing me further.
Even if that were true, do you really think them overseas governments would never figure out our secret economic weapon and retaliate?
The cost of labor in the manufacture of stuffed animals for Fisher Price is $1 in China and $8 in the US. The FairTax ain't gonna equalize that.