23% is currently buried in the cost of the item..so removing it, and replacing it with the fair tax would result in the same $100, only the receipt would show
“purchase $77”
Tax $23
Total $100
While a good argument is that companies wouldn’t reduce the cost of their items to increase their profit margins, the free market would kick in and prices would fall..
That 23% includes all taxes paid, including those by workers. How are those costs removed if workers keep all of their pay? Workers will take home more pay, but costs will not come down as the fairtax advertises. Fairtaxers are playing bait and switch with their analysis.
Well..whether it will work or not...whether they will let us have it...I’m voting for Huckabee. No more IRS...what a campaign issue.
Prices might fall, over time. Markets don’t work immediately nor all at the same pace. Some companies might find there’s more demand for their product than they thought, and just keep the money. Say, for example, oil companies or drug companies. Also, companies with patented products would keep the money, thank you very much.
23% is currently buried in the cost of the item..so removing it, and replacing it with the fair tax would result in the same $100, only the receipt would showI'm honestly not dogging you but some of you are so mislead by "the book" it's unbelievable.“purchase $77”
Tax $23Total $100
First of all the Fairtax replaces ALL federal income taxes and your payroll taxes.
Maybe you could explain how the 23% rate will replace the 23% embedded taxes AND your personal income tax AND your personal payroll tax And send you a government check every month ON REDUCED PRICES?