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To: Toddsterpatriot
You seem to not understand how an effective tax rate works. "Breaking out" the tax amount as specified in the bill is one number which you'd pay during the visit but what it actually costs you must take into consideration the effect of the prebate. Let's look at your example.

The bill calls out the marginal tax rate (just as do the present income tax tables). It requires the receipt to specify the tax paid at point of purchase using the inclusive marginal rate of 23%.

If you paid the doctor $100, then $23.00 would show as the marginal rate which is what you would pay at that point in time - HOWEVER you would be receiving a refund so that (using your 10% effective tax rate) you'd end up paying a net of 10 percent tax inclusive after the prebate. The untaxed doctor bill would be $77.00 ($100.00 minus $#23.00) making the effective amount you pay while considering the prebate to be about $85.56 - the $77.00 plus the tax amount to include your 10% effective rate.

765 posted on 01/10/2008 9:01:20 AM PST by baybabe
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To: baybabe
The bill calls out the marginal tax rate (just as do the present income tax tables). It requires the receipt to specify the tax paid at point of purchase using the inclusive marginal rate of 23%.

Excellent! So, a bill that is $100 before the FairTax would rise to what level after the FairTax is added?

766 posted on 01/10/2008 9:08:59 AM PST by Toddsterpatriot (What came first, the bad math or the FairTaxery?)
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