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To: Man50D; xcamel
How do you not understand the answer to your question is in my quote you include in post #33? The 23% will be external to the price! That means the tax rate will be itemized as a separate entry on the receipt so everyone can see the rate as opposed to the income tax that lumps the rate into the price so no one sees what is happening with taxes. That's exactly what politicians want to happen.

How do you not understand that corporations will pay 23% on everything they buy and then pass that on to the consumer/customer?

One of the claims of fair taxers is that their are embedded taxes in all goods. How would that disappear when a company has to pay 23% on (take a large printer, for instance) ink, paper, rags, chemicals, uniforms, electricity, etc? Everything they buy will taxed at 23% and they simple pass that on to the customer. Wouldn't the cost of producing something immediately go up 23%?

How is that any different than what is going on now?

54 posted on 01/22/2008 5:10:57 AM PST by raybbr (You think it's bad now - wait till the anchor babies start to vote!)
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To: raybbr
How do you not understand that corporations will pay 23% on everything they buy and then pass that on to the consumer/customer?

I'd ask you why you don't understand the concept corporations will not have to pay a tax with The Fair Tax since business to business taxes will be abolished Fair Tax FAQ #1 but I don't have to ask as it is obvious you're just guessing and not reading the bill. You don't have a clue.
68 posted on 01/22/2008 5:19:08 AM PST by Man50D (Fair Tax, you earn it, you keep it!)
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To: raybbr

Sales tax now is NOT charged on items intended for resale.


90 posted on 01/22/2008 5:56:48 AM PST by MrB (You can't reason people out of a position that they didn't use reason to get into in the first place)
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To: raybbr
From the Bill:

SEC. 102. INTERMEDIATE AND EXPORT SALES.

`(a) In General- For purposes of this subtitle—

`(1) BUSINESS AND EXPORT PURPOSES- No tax shall be imposed under section 101 on any taxable property or service purchased for—

`(A) a business purpose in a trade or business, or

`(B) export from the United States for use or consumption outside the United States, if, the purchaser provided the seller with a registration certificate, and the seller was a wholesale seller.

`(2) INVESTMENT PURPOSE- No tax shall be imposed under section 101 on any taxable property or service purchased for an investment purpose and held exclusively for an investment purpose.

`(3) STATE GOVERNMENT FUNCTIONS- No tax shall be imposed under section 101 on State government functions that do not constitute the final consumption of property or services.

`(b) Business Purposes- For purposes of this section, the term `purchased for a business purpose in a trade or business’ means purchased by a person engaged in a trade or business and used in that trade or business—

`(1) for resale,

`(2) to produce, provide, render, or sell taxable property or services, or

`(3) in furtherance of other bona fide business purposes.

`(c) Investment Purposes- For purposes of this section, the term `purchased for an investment purpose’ means property purchased exclusively for purposes of appreciation or the production of income but not entailing more than minor personal efforts.

129 posted on 01/22/2008 6:49:02 AM PST by DivaDelMar
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