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To: elkfersupper
"With the Fair Tax, your hated recreational and black-market prescription drug dealers would have to pay their fair share of taxes."

They're paying taxes today on everything they buy.

Let's make it real simple. Drug dealers have lawyers, right? Let's say the lawyer is self-employed. He charges the drug dealer $100 per hour. The drug dealer pays him $100 per hour.

Now, the lawyer pays income taxes and FICA, right? That comes out of the $100. The lawyer keeps $70 and send $30 to the federal government, right?

Where did that $30 come from? The drug dealer! The drug dealer is really the one paying the federal tax! If the lawyer didn't pay taxes, he would only charge $70 per hour, right? And this goes for everything the drug dealer buys -- cars, houses, furs, diamonds -- everything contains these hidden taxes, just like with the lawyer.

Now, perhaps you mean the drug dealer is not paying any income tax. That's true, he isn't. But what if we could wave a magic and and force all drug dealers to file a 1040 and pay income tax? Do you think they'll take the money out of their profits? Are you kidding? They'll simply charge more for drugs so that, after taxes, they'll have the same amount as before.

Meaning who is really paying the tax? Correct! The drug user, not the drug dealer. You were paying attention! Good for you. A gold star for elksfersuper.

124 posted on 09/03/2007 6:35:32 PM PDT by robertpaulsen
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To: robertpaulsen

They'll simply charge more for drugs so that, after taxes, they'll have the same amount as before.

Not if market forces are allowed to work.

127 posted on 09/03/2007 6:44:32 PM PDT by elkfersupper
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To: robertpaulsen

willful denial of the nature of man is not a good enough reason to force a “permission to live” tax scheme down anyone’s throat..


129 posted on 09/03/2007 6:48:15 PM PDT by xcamel (FDT/2008 -- talk about it >> irc://irc.freenode.net/fredthompson)
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