[lucysmom]

Lucy, individual taxes are incident on the worker. If you disagree, take it up with ANY economist. Easily illustrated - if I have $100 withheld from my paycheck, will the sales price of the item I help produce change if my taxes decrease? increase? Of course not.

But, but, business doesn't pay taxes, their customers pay taxes.

[robertpaulsen]

"It's incident on the worker." "Ask any economist." "Read the book." Look up the legislation." This Fair Tax thing is supposed to be so simple, yet they refuse to answer a direct question.

You are correct. The customer pays all these taxes and compliance costs. Corporate taxes, employee withholding, employer FICA, employee FICA -- they're all in the price of the product.

Incident on the worker? Well, the employee gross wages are in the price of the product. gross = net + withholding. If the withholding isn't enough or too much, the employee adjusts it on April 15th.

But the customer still pays because the employee GROSS wage is in the price of the product, not just his taxes.