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To: baybabe
Any tax refund (which is what the prebate is) comes to you “after the fact” so the prebate is basically the same effect - it still lowers your effective tax rate.

Are you claiming that because I may get a prebate of $30, that the doctor bill which is $100 now and will rise to $130 after the FairTax is really only $100?

So why not just say that the bill will rise to $130? What are you afraid of?

Or do you fall for the lie that prices will remain the same, you'll pay $0 taxes and get a prebate?

761 posted on 01/08/2008 3:58:56 PM PST by Toddsterpatriot (What came first, the bad math or the FairTaxery?)
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To: Toddsterpatriot
There have been many studies on past threads showing that under the FairTax (with the 9% price reduction that both sides have stipulated) that a given taxpayer’s purchasing power will rise, not fall as you seem to think.

You buy into an automatic price rise while income remains stable and that has certainly never been shown to be so in any economic study. The fact that purchasing power and economic activity increases under the FairTax is more significant I think. Certainly you will be paying taxes under the FairTax at your effective FairTax rate (rather than the higher marginal 23% ti rate you project). If you'd figure out your effective rate you'd be in a better position to see that.

763 posted on 01/08/2008 4:12:37 PM PST by baybabe
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