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To: Tatze
Ok, so it just makes the point better. You have to earn around $140 to have $100 after a 28% tax.

Great. So now I have $100 in the bank.

After the FairTax, if the price says $100, you earn $100, you pay $100. $23 of that is the tax.

Great, I paid $40 in income tax and $23 (30%) for the sales tax. Sign me up!!!

Can you grasp the concept of embedded taxes, or the difference between taxes quoted inclusively or exclusively?

You believe embedded taxes on goods sold now are 23%?

The FairTax removes one tax, and replaces it with another.

But I don't get my withholding back, so it doesn't really remove my income tax, does it?

591 posted on 12/26/2007 2:54:47 PM PST by Toddsterpatriot (What came first, the bad math or the goldbuggery?)
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To: Toddsterpatriot
But you didn't pay the $40 on the $100 you now spend. You paid $0. On a $100 purchase, you're actually paying your effective tax rate rather than the 23% since some part of the tax is returned in the form of the prebate.
But I don't get my withholding back, so it doesn't really remove my income tax, does it?
Get real - you want a retroactive refunding of all income taxes ever paid?? Surely you're not really that dense. Look at it this way, then, at least the FairTax will keep you out of tax prison due to gaming the tax system as you claim to have been doing.
620 posted on 12/26/2007 7:50:43 PM PST by baybabe
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