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To: Your Nightmare
The big difference between the sales tax and an income tax or flat tax, and the reason the inclusive rate is appropriate for the income tax or flat tax, is that a sales tax adds the tax to the base, the income tax or flat tax subtracts the tax from the base.

There is no one exclusive (no pun intended) way to express tax rates. There is more than one way that may be used each time. The method you choose may or may not be the same I choose.

I choose tax exclusive rates-
under the nrst to determine how much an after tax price will be (eg a $50 shelf price becomes 50*1.3=65)
under the income tax to determine how much I have to earn to be able to pocket a certain amount (eg to save enough to buy that new $50 pair of slacks, I need to earn $65)

I choose tax inclusive rates-
under the nrst to compare to the inclusive income tax rates I pay and to determine what part of my spending goes to taxes
under the income tax to determine what part of my earnings goes to tax

There is no one way more appropriate than another. In fact your assertion, "the reason the inclusive rate is appropriate for the income tax or flat tax, is that a sales tax adds the tax to the base, the income tax or flat tax subtracts the tax from the base." can be viewed differently. "the reason the inclusive rate is appropriate for the nrst, is that a sales tax subtracts the tax from total spent, the income tax or flat tax adds tax to what you must earn to be able to buy something."

6 of one, half a dozen of the other" as grandma used to say.

So while you would like to say that method of rate calculation is a reason for rejecting the nrst, it's not. It's just the reason you're using today to try to dissuade others from embracing reform.

459 posted on 03/09/2005 9:34:51 AM PST by Principled
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To: Principled
There is no one exclusive (no pun intended) way to express tax rates. There is more than one way that may be used each time. The method you choose may or may not be the same I choose.
You obviously didn't read my post. "There are none so blind..."
464 posted on 03/09/2005 9:42:28 AM PST by Your Nightmare
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