According to the article: "No more federal withholding. No more Social Security withholding. No more Medicare withholding. Imagine paying the same price for something but having your entire paycheck to buy it."
But now you're changing that and saying the employee will NOT receive his entire paycheck? Well, that's different than what the article says, now isn't it?
Fine. Let's play by your new made-up rules. That gives the builder (and his suppliers) 12.4% to reduce his price (and let's assume he chooses to pass on all of that 12.4% to the buyer). Corporate income tax and compliance cost savings will add another 1-2%.
Now add the 30% Fair Tax. Sorry, but the price of the home increases 12% and the employee does NOT have his full paycheck. A double lie!
Opening what and engaging what?
Are you really that ignorant?
Don’t you know there are two parts of Social Security withholding, one for the employee and a matching part by the employer?
When a wage earner gets paid does he see his employer’s matching FICA contribution withheld on the paystub? No.
If the employer does not withhold the employee’s FICA contribution, and all other payroll and income taxes, does the employee not see the entire gross income?
And what of the employer’s matching contribution?
You don’t understand the basics of taxation and yet you post like you know something. Just another hot air know-nothing know-it-all.
And you are adding wrong because it is not just the employer’s payroll and tax savings that are used to reduce costs, it is also the employer’s suppliers and contractors that pass on their savings as well. Business to business transactions are not subject to the NRST. And the cost reductions up and down the entire supply chain, 10-30% from each supplier and contractor add up to reduce costs. You forgot those suppliers and contractors because of your simpleton model. You don’t have the data on the supply chain and you haven’t done an analysis because you have no data. Yet you argue without facts and data. What bravado!
Simple example:
Supplier A —> 18% cost reduction —> Supplier B —> 14% cost reduction
Contractor 1 —> 12% cost reduction —> Supplier B —>11% cost reduction
etc.
——> Retailer
and so on. The analysis of federal embedded taxes and cost savings involves modeling the supply chain across broad retail product categories. Your simpleton model gets an F.
But of course you did not mention these things. You are so busy acting like a know-it-all that you failed to learn anything to know.