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To: Principled
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.

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.

82 posted on 05/21/2008 7:07:28 AM PDT by Always Right (Was it over when the Germans bombed Pearl Harbor?)
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To: Always Right
AH I see your game LOL.

Under the nrst, the consumer pays the tax included in price and the business remits.

NOw who's changing?

Just admit it AR, you're looking foolish.

INcome tax; criminals pay zero. NRST: criminals pay when they consume.

84 posted on 05/21/2008 7:15:01 AM PDT by Principled (Vaporize the "Divide and Conquer" taxes - Have everyone pay the same marginal rate!. NRST!)
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