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To: Principled
Bot the flat tax and the nrst add to prices. The flat tax doesn't subtract from prices.
Uh, the flat tax uses income minus savings as a base. It's subtracted from this base. It doesn't "add" to prices. It's subtracted from tax inclusive consumption. The NRST uses tax exclusive retail sales as a base and is added to this.


Our income tax adds to prices too. Why is it tax inclusive?
You have no clue what I'm talking about, do you?
446 posted on 03/09/2005 8:31:32 AM PST by Your Nightmare
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To: Your Nightmare

I certainly understand what you're talking about, but it makes no difference. The point is that on the margins, a 23% income tax (inclusive) is equal to a 30% NRST (exclusive), and the total flat tax burden on labor, including payroll tax is greater than 23%.


457 posted on 03/09/2005 9:33:34 AM PST by 4edm 4ever (Let's change the initials IRS to INS and send them to chase terrorists instead of working Americans.)
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To: Your Nightmare
Uh, the flat tax uses income minus savings as a base. It's subtracted from this base. It doesn't "add" to prices.

Irrespective of base calculation, the flat tax does indeed add to prices. Remember the taxes and tax costs (for the flat tax, that would include employer "contribution" payroll taxes)? Those costs are added to prices, subtracted from wages, or removed from ROI.

462 posted on 03/09/2005 9:40:35 AM PST by Principled
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