[Your Nightmare]

I took the liberty of correcting your list for you.

• Dramatically Could possibly reduce the costs of goods and services by 20 to 25 percent.
• Allow you to keep 100 percent of your paycheck, pension, and Social Security payments.
• Gross Domestic Product will might increase by almost 10.5 percent in the first year after enactment.
• Compliance costs would could, in theory, decrease by 90 percent.
• Real investment would could initially increase by 76 percent relative to the investment that would be made under present law. While this potential increase would might gradually decline, in highly speculative economic models it remains 15 percent higher than under the existing tax structure.
• Exports would might increase by 26 percent initially and would could remain more than 13 percent above the level under the current tax system.
• Real wages will might increase.
• The working poor would could experience an increase in real lifetime consumption of between 8 and 14 percent.
• Theoretical economics have speculated that the NRST will increases incentives to work by as much as 20 percent in many households, leading to higher economic growth and efficiency.
• Interest rates will might fall 25 to 35 percent.

 

There, that's more accurate.

You're welcome.

[ancient_geezer]

Dramatically Could possibly reduce the costs of goods and services by 20 to 25 percent.

Considering the law of supply and demand is not repealed by the legislation, while the taxes that businesses pay today are. and competition for market share is quite healthy in our economy, "Could possibly" is a stretch.

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, an emperical measure 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.

• Total revenues collected by Feds in '00 = $1945billion ( 33.6% of consumer price)

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

• Individual Income Tax(Labor) = 945billions,
• Employee half of Social Insurance = 653/2 = 326.5billions,
• Excises = $68billion
• Customs Duties = $19Billion
• Miscellaneous = $40Billion

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

• Total constant price factors = $1358.5 billion
• Remainder federal tax components affecting price = (1945-1358.5) = $586.5billions

Adjust for the approximate reduction of interest & cost of tax compliance (

Adjust for a conservative $800 billion cost of tax compliance, (The Flat Tax; Hall & Rabushka, '95,What the Income Tax Costs the American People: quoting James L. Payne estimates 65cents for each dollar of revenue collected).

• Total tax related factors affecting consumption price = (800 + 586.5) = $1386.5billions

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

33.6*(1386.5/1945) = 23.9% reduction in consumption prices

Which more than verifies the Jorgenson empirical study of 22% fall in producer prices.

The two sources are in reasonable agreement, and I see 20-25% a reasonable value to expect retail 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.

[ancient_geezer]

Gross Domestic Product will might increase by almost 10.5 percent in the first year after enactment.

Seeing that marginal tax rates are reduced from over 30% that exists today under the income payroll tax sytem down too a maximum 23% under the NRST with investments no longer taxed. growth of the economy is a given on the basis of previous reaction of the economy to such tax rate reductions. The Reagan tax rate cuts being a prime example of not only of economic growth from marginal tax rate decreases, but a characteristic growth in government revenue collections that go with growing economies.

Actually the 10.5% figure is a very conservative value to expect. Many economists project 15-20% economic growth and increase of standard of living with the enactment of the NRST.

[Remember_Salamis]

I ave to say that you're a much more constructive ctitic than lewislynn. You actually ask legitimate questions rather than just propagandize and refuse to answer any valid counterarguments to you own claims.

But, I do disagree with you.

Like this post:

Sure, you can change all the "wills" to "maybes", but there are never 100% guarantees in ANYTHING, yet we still state that (a) will cause (b), which may inturn trigger (c).

These estimates are based on the SOLID, I repeat, SOLID, supply-side economic theory from such great economists as Milton Friedman and Laffer. In fact, most of it even complies with Keynesian economic theory. Yet, current Democratic rhetoric conflicts even Keyneian economic theory, most of which has been debunked. Like the President first tax cut in '01. That was a Keynesian tax cut: recession hits, cut taxes and stimulate spending. Yet, Dems vehemently opposed it. His second tax cut was a supply-side tax cut: cut inhibitors of investment, increase capital stock, and watch the economy mushroom.