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To: Phantom Lord
Gotcha. So today, Joe Drug dealer is profiting about $50,000 a month from selling coke and paying zero taxes. And Joe Drug dealer, having money and enjoying the good life just bought himself a big $100,000 Benz, then put on $20,000 aftermarket spinners. Wears $200 sneakers. Enjoys buying expensive jewelery for himself and his "lady friends". And he has paid ZERO in taxes.

He pays the 23% embedded taxes on his legal purchases. He avoids income taxes on illegal sales. However, if the FairTax is in place, he would have paid taxes on the Benz, spinners, sneakers, jewelry, etc...

Exactly as it is today. In neither case does the drug dealer actually submit any tax. The only difference is under the fairtax he receives a little piece of paper showing what taxes that were paid on his purchase. On the income tax they are hidden and embedded into the price.

91 posted on 08/27/2007 10:54:48 AM PDT by Always Right
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To: Always Right
He pays the 23% embedded taxes on his legal purchases. He avoids income taxes on illegal sales. However, if the FairTax is in place, he would have paid taxes on the Benz, spinners, sneakers, jewelry, etc...

Exactly as it is today. In neither case does the drug dealer actually submit any tax. The only difference is under the fairtax he receives a little piece of paper showing what taxes that were paid on his purchase. On the income tax they are hidden and embedded into the price.

So, are you finally admitting that 23% of current product prices is an embedded tax, which you have denied for years?

95 posted on 08/27/2007 11:10:51 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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