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To: Always Right
Your company is still paying that extra $20,000. In a FairTax world, it will save that money, and be able to lower its prices accordingly, only if it can reduce your salary to $80,000. In other words, your take-home pay is the same as before. Sure, you'd get to "keep 100 percent of your paycheck," as Boortz and Linder repeatedly write, but it would be a smaller paycheck. That's kind of a big thing to leave out.

Lets see. I make $100,000 today but my take home pay is $80,000. Tomorrow the FairTax is implemented and my take home pay is $80,000.

The difference is and I am worse off how?

64 posted on 08/27/2007 9:59:11 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: Phantom Lord
Lets see. I make $100,000 today but my take home pay is $80,000. Tomorrow the FairTax is implemented and my take home pay is $80,000. The difference is and I am worse off how?

The problem is that is not how it works in the real world. In the real world there is no mechanism to reduce the wages from $100K to $80K, so wages stay at $100K. Well you say, what is wrong with that? That means prices can't come down nearly enough to offset the tax. After tax, prices have to rise about 20%, which is fine for all those people earning income because they are taking home more money. But for people who are retired, they have just seen the purchasing power of their next egg drop 20%. Huge problem for retirees.

69 posted on 08/27/2007 10:03:58 AM PDT by Always Right
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To: Phantom Lord
RE: # 64

Lets see. I make $100,000 today but my take home pay is $80,000. Tomorrow the FairTax is implemented and my take home pay is $80,000.

Wrong. Assuming for this excample that the $18,000 of the deductions are going to the Federal Government as taxes of one sort or another (IncTax, Fica, etc. The FairTax is implemented, the Feds no longer takes the $18,000 -- your take-home pay is now $98,000.

146 posted on 08/27/2007 1:06:22 PM PDT by Turret Gunner A20 (The dumbest people I ever met, I met in college.)
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To: Phantom Lord
Lets see. I make $100,000 today but my take home pay is $80,000. Tomorrow the FairTax is implemented and my take home pay is $80,000.

The difference is and I am worse off how?

The difference is, before, your $80,000 was after taxes...After, your $80,000 is yet to be taxed.
256 posted on 08/28/2007 8:47:33 PM PDT by lewislynn (What does the global warming movement and the Fairtax movement have in common? Disinformation)
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