Wild assertions based on gross conceptual errors.I guess "wild assertions" in FairTax speak is data-based evidence.
Health insurance like all other products and services has federal embedded taxes in its cost and price structure. The FairTax is merely replacing these embedded taxes, so don’t insinuate that the FairTax is an additional tax, it is a repackaged federal tax in transparent form.Currently employers get to deduct health insurance costs, under the FairTax they would pay 30% tax on them. How is this not an additional tax on the employer? Sure they may save in other areas but you have add up all the pluses and minuses.
Do you think before you engage your mouth?
Look at what you said:
“Currently employers get to deduct health insurance costs, under the FairTax they would pay 30% tax on them.”
First, under the FairTax there is no need to deduct anything because there is no income tax to avoid.
Second, health insurers like all other businesses have embedded federal taxes that will be eliminated thereby enabling them to lower costs (premiums). Furthermore, insurance proceeds are credited back.
If the Insurer’s embedded federal taxes are 23% inclusive or 30% exclusive, and they are eliminated and replaced by a 23% inclusive FairTax NRST or 30% exclusive, then employers purchasing health insurance will see no change in their cost structure. They will pay the same amount for health insurance.
These are the basic points that you and others are missing either by design or ignorance.
The principle is summarized simply as:
The FairTax replaces payroll and income taxes that already exist in hidden form in the pricing of goods and services and that occur at all levels of production.
The existing payroll and income system acts as a system of hidden VATs at each level of service and production. Removing these hidden VATs and replacing them with a consumption tax is not adding new taxes, it is merely changing the form of tax collection from hidden to visible.