Take something that now costs $1 - a quart of milk, for instance. With the "Fair Tax," it would then cost $1.30.
Almost any high school graduate would be able to tell you that the 30-cent tax constitutes 30% of the original price...
That the "Fair Tax" advocates express it otherwise is prima facie evidence they are liars and frauds, or fools.
Been awhile since you bought milk? :’)
That’s a tad backwards...
It’s:
“Take any item you’d be willing to pay $10 for, and under the FT, you’re only going to get $7.70 worth of that item”
wrong..if milk costs $1 now, it will cost $1 under the fair tax, only the tax is included in the $1..
that’s how I understand it..and I’ve read the book..can you show me where you learned it’s added on and from what source?
I’m not tryin to be a bugger here, just want to debate this and see where you are gettin ur facts..
If you are referring to the Fair Tax, you haven’t the slightest idea of what you are talking about.
Take something that now costs $1 - a quart of milk, for instance. With the “Fair Tax,” it would then cost $1.30.
Almost any high school graduate would be able to tell you that the 30-cent tax constitutes 30% of the original price...
That the “Fair Tax” advocates express it otherwise is prima facie evidence they are liars and frauds, or fools.Take something that now costs $1 - a quart of milk, for instance. With the “Fair Tax,” it would then cost $1.30.
Almost any high school graduate would be able to tell you that the 30-cent tax constitutes 30% of the original price...
That the “Fair Tax” advocates express it otherwise is prima facie evidence they are liars and frauds, or fools.
Ok, I didn’t read the book but I did take high school math and I can see that your argument is just plain wrong. Lets do the math:
$1.00 for a quart of milk with a $0.30 sales tax comes out to $1.30. Now if you spend all of your income on milk, what percentage do you pay in taxes? .3/1.3=.23 or 23%
The reason Fair Tax people would say the tax is 23% is because that is the best way to compare it to the income tax. 23% of what you spend on new products will go to the federal government. You are trying to compare apples to oranges. Apples to apples, the Fair Tax is 23%, apples to oranges its 30%.
I can take your flawed high school math further and say that someone who pays 23% of their income actually pays 30%. It can work both ways. If your gross pay was $50,000 and you paid 23% in taxes, that comes out to $11,500 leaving you with $38,500 net. Percentage of income that is taxed: 11500/38500 = .299 or 30% Wow, its crazy how you can play with numbers. The bottom line is that to accurately compare an income tax to a sales tax you have to apply the same method and compare apples to apples.
That's not what the Fair Tax folks claim. They claim when the income taxes disappear cost of goods to businesses will be lower and businesses will still continue to charge $1 for that milk with the 23 cent tax (that's how they get their 23%) coming out of that. It is claimed the tax will have no effect on prices.
I think most here can see the problem with that previous paragraph!
Let's not forget the "prebate". This is a government check that everyone will receive to cover the taxes on what the government deems to be the taxes paid on the necessities of life. Great... Make EVERYone a recipient of government largess!
A simple flat tax was a better idea, but that has no support right now.