[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.

[xcamel]

One should never let a pesky thing called facts mess up a pitchfork-and-torches populist scam.

[84rules]

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.

You conveniently forgot to mention that the FairTax first strips out all other Federal Taxes, a mistake commonly made by those who have not thoroughly read the FairTax Plan. Your trying to obfuscate the issue by zeroing in on only the sales taxes (5% here in Virginia) without considering all the other Federal level taxes small businesses have to pay is nothing less than disingenious.

Also, your claim that the FairTax taxes profit is completely incorrect. Nowhere in the plan is there any provision for taxing profit. Only the retail sales are taxed.

But to get back to the main point of my original post, businesses do not simply eat their tax liabilities. They pass the taxes along to the customer in the prices of the goods and services offered and when the customer pays, they don't see the taxes. Hence, the hidden, embedded taxes.