[84rules]

Step away from the propaganda, go down to any small business, ask them what their gross sales were, and what their tax liability was. The embedded tax myth has to end sometime.

My wife owns a hair salon, a very representative small business. She does not simply eat the taxes she has to pay for employees, products, corporation taxes, property taxes, etc. They all get factored into the prices she charges to her clients. But the client doesn't see the taxes because the bills are not itemized to show what portion of the payment goes to what cloumn in the sales register.

Those taxes (as well the taxes passed on to my wife's hair salon by the suppliers) are ultimately paid by the consumer and are very neatly hidden in the prices. The embedded tax is not a myth at all.

[longtermmemmory]

but thanks to the fair tax scam’s rules (as written in HR 25 at http://www.thomas.gov ) if she does not go to the expense of producing an itemized reciept she will be a criminal. Of course according to the same section the CUSTOMER is also a criminal for not obtaining the reciept.

[kingu]

Fine, what was your wife’s direct total tax liability last year as a percentage of sales? 2 percent? 4 percent?

To reach the, yes, mythical 23% inclusive ‘Fair Tax’ rate, the average small business, which operates on a keystone profit scheme, would have to pay well over 18% of it’s gross sales in taxes. That means a small business that does $400,000 in sales would have to have to pay $72,000 in taxes on $200,000 gross profit.

It is a myth, even the people who originally implied that prices would remain the same after the imposition of FairTax have backed away from it.

Is there a percentage of a sale that could be tracked back to taxes? Yes. Is it significant? No more than the percentage charged by credit card companies to the business.