"If you think the rent is inflated due to the landlord paying the income tax why don't you think it will be inflated due to the landlord paying the FairTax on his personal purchases?"
Oh brother. Another novel economic theory. Is there no end to the leaps of logic you will take to disparage the FairTax?
Oh brother. Another novel economic theory. Is there no end to the leaps of logic you will take to disparage the FairTax?It's not novel at all, it called "real income." You should find it discussed in any Econ 101 text book. You really need to pick one up. It would tell you that real income is "income measured in terms of the goods and services it can buy."
Oh brother. Another novel economic theory. Is there no end to the leaps of logic you will take to disparage the FairTax?
Assuming 100% rent income:
Rent before sales tax...$1000
$1000 minus 25%Income tax = $750 disposable (after tax) income
Playing your silly price game.
Rent after sales tax $1000 minus 25% (previous income tax) $750.00 (pre-tax gross income)
$750.00 plus new sales tax = $974.00
Remit 23% ($224.00) federal tax = $750.00
$750.00 minus 23% tax when spent = $577.50 disposable (after tax) income
Income tax = $750.00 after tax income
Fairtax = $577.50 after tax income.
A 23% ( no surprise) loss of after tax income.
Oh BTW, the total sales tax collected from $974.00 rent would be $396.50 OR 41% tax.