Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: William Terrell; Principled

Assume 30% increase in the prices of all the things you buy in that pay period.

(_|_)uming again I see, how about some studies and figures to back your off the wall self serving guesses.

I refer you to the section of the following article about the Income/Payroll tax system and its impact on our economy "A. Hidden Upstream Taxes. " paragraph 39.

"[39] Dr. Dale Jorgenson, Chairman of Harvard University's Economics Department, believes that the price of goods and services are inflated by about 20 percent or more by upstream taxes consumers ultimately bear. In a recent paper Dr. Jorgenson estimated the built-in taxes contained in the price of goods and services. /22/ In the chart above, he quantified the hidden component of tax, estimating that producer prices would fall on repeal of upstream taxes an average of about 22 percent."

Looking at the accompanying chart, the range of values from industry to industry appears to be about 12-25%.

Economists Gary and Aldonna Robbins of the Texas-based Institute for Public Policy examined the case of dry cleaning a shirt, with a particular eye toward uncovering the hidden costs of taxes in price.

The Robbin's attributed over 33.6% of "consumer prices" to be due to federal taxation passed on to the customer.

The Federal Tax System
http://www.cbo.gov/showdoc.cfm?index=2125&sequence=0&from=1#pt1

From the Table 1 we may extract the proportionate contributions of each sector of taxes as they contribute to consumer price for the year 2000.

Those tax components which will not change prices as a consequence of enactment of HR2525

============================

Adjust for a conservative $600billion(1995 figure, AGCA '00, Payne '95, PillaBartlettNorquist '95 ) interest & cost of compliance effects.

Estimated change in consumption prices as consequence of enactment of a National Retail Sales Tax, repealing all business income and payroll taxes:

33.6*(1186.5/1945) = 20.5% in consumption prices

Which compares well with the Jorgenson empirical study of 22% fall in producer prices.

The two sources are in reasonable agreement, and I see 20-23% a reasonable value to expect retalil shelf prices to fall not only for customers here in the United States, but in our exports as well making them far more competitive on international markets.

When businesses no longer pay corporate income tax, nor the employer's half of FICA, the costs of tax compliance are removed, the cost of goods and services tend to fall rather than rise by the amount you claim.

757 posted on 11/08/2002 6:35:51 PM PST by ancient_geezer
[ Post Reply | Private Reply | To 755 | View Replies ]


To: ancient_geezer
I've already answered this in prior posts. What does all this confusion mean? You post a statement, then privide a link to something that will take me hours to analyse. If you understand what you are posting, abstract and post it. I don't have the time to winnow through reams of unrelated data. Do you?

If I truly understand something I can reduce it to a paragraph or two in my own words. Don't you have that ability?

821 posted on 11/09/2002 7:35:38 AM PST by William Terrell
[ Post Reply | Private Reply | To 757 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson