For an ACCURATE analysis one has to assume either the person who remits the tax pays the tax OR that all these taxes are embedded.
I did that. I assumed that business remits and pays ER payroll and business income tax and that individuals remit and pay PIT and EE payroll - just as you required.
Why don't you admit you're wrong? It doesn't mean you support the nrst. It just means the nrst will indeed allow those who currently legally particpate in the income tax system to pay less... because criminals and illegals will pay more.
It's just one small piece AR. Don't become a namecaller - just do what's right.
And the CORRESPONDING assumption in the fairtax would be that the business remit the sales tax, correct? So under the fairtax, the hooker does not pay anything when she purchases something because it is the BUSINESS who pays the tax. That is where the bait and switch takes place in your analysis. If you truly stick to consistent assumptions you get the right answer. BTW, that is the most straight forward set of assumptions, in the embedded tax model it works out that the John is cheating the system in both cases and not the hooker.
It just means the nrst will indeed allow those who currently legally particpate in the income tax system to pay less... because criminals and illegals will pay more.It's not about how much they would pay, it's about where they get it.
Not all illegals work under the table. Some have withholding by using fake SS #s.
After Fairtax Scenario:
A criminal robs a legally participating retail store. Technically 23% of all the proceeds in the cash drawer is federal tax to be paid. After the robbery only the criminal, not the business owner, would be paying any tax...Law enforcement gets involved.
How does that reduce my taxes again?
After Fairtax Scenario:
A legally participating antique/used gun dealer is robbed of his inventory. There is no tax on his sales, however he does pay tax from his proceeds when he spends it.
The robber sells the merchandise for 10 cents on the dollar, then pays tax when he spends it...Law enforcement gets involved...How does eliminating legitimate income from law abiding businesses reduce my taxes again?
After Fairtax Scenario:
You're taking the kids/grandkids to Disney World with a pocket full of cash ready to be taxed to the max. Some low lifes rob you of your cash leaving you with nothing. But they pay tax when they spend YOUR money on their kids at Disney World.
How does any criminal act reduce our taxes again? And don't forget they all get their prebate. Including the illegals with the fake SS#.