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To: Your Nightmare

You figured out how much the transition inventory credit is going to cost yet? The number I come up with are ~ $140 billion.

Did you subtract the income & payroll taxes collected on that inventory that have already been paid into the system? Remember it is a refund of overpayment of taxes, just as a income tax refund is a return of dollars paid in excess of taxed actually owed.

I don't remember seeing this in the computation of the 29.87% NRST rate.

Since there is no computation for a 29.87% NRST rate, only a conversion factor for what is added on to theoretical taxfree prices, you know like how many additional dollars one has to earn to pay the price of goods and services with income & payroll taxes on the individual today.

Under the NRST no additional dollars are added to the tax inclusive pricing on "new" goods and services. New meaning taxes not already collected, i.e. product built after the implementation of the NRST.

OTOH, under the tax embedded pricing we pay today where we must not only pay business taxes embedded into those goods and services, but have to earn on average 20% more just to have the aftertax income to pay for those goods and services.

family consumption expenditure is gross income less taxes and savings.

Thus the additional % that must be earned over family consumption expenditure to purchase goods and services today = fed/(1-state-fed-savings) =

15/(1-.15-0.102-0.012) = 20.38%

paid in addition to the tax embedded price of products under the income/payroll tax system.

54 posted on 05/28/2004 3:32:51 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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To: ancient_geezer
Since there is no computation for a 29.87% NRST rate, only a conversion factor for what is added on to theoretical taxfree prices, you know like how many additional dollars one has to earn to pay the price of goods and services with income & payroll taxes on the individual today.

Didn't the people who computed the required rate for the NRST use current consumption level to determine what was needed to be "revenue neutral"?
58 posted on 05/28/2004 6:22:54 PM PDT by Your Nightmare
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