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To: Libertarianize the GOP
So have you read their proposal since what I read shows investment income is exempt from taxes unless it is spent on consumption?

If by proposal you mean the actual bill...yes I have, and you need to read IMPLICITLY CHARGED FEES FOR FINANCIAL INTERMEDIATION SERVICES

Also you incorrectly assume that the removal of all current taxes will have no effect the price charged for a given commodity.

I didn't say it wouldn't but to say matter of factly it would, would certainly be incorrect.

What I did say is their 23% rate is tax inclusive "of the gross payment". and would increase whatever base prices are by 30%+.

In other words in a state with a 7% sales tax for example, a $100.00 before tax price would be :

$100.00 + 7% = $107.00
$107.00 + fairtax = $139.00 (gross payment)
$139.00 (gross payment) minus 23%(gross payment tax) = $107.00

On that item you would have paid 32% (not 23%) tax on the $100.00 item.

Don't beleive it's a gross payment tax?

`(b) RATE-

`(1) FOR 2003- In the calendar year 2003, the rate of tax is 23 percent of the gross payments for the taxable property or service.

It gets worse. If you like Social Security bureaucrats "determining" the tax rates you'll like the fairtax.....

As I said, I've been beyond their rhetoric and read the entire bill......

25 posted on 07/27/2002 4:44:17 PM PDT by lewislynn
[ Post Reply | Private Reply | To 22 | View Replies ]


To: lewislynn
Your links don't work.
26 posted on 07/27/2002 5:36:25 PM PDT by Libertarianize the GOP
[ Post Reply | Private Reply | To 25 | View Replies ]

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