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To: Principled
The subject of discussion was "exclusive income tax rate . it isn't possible to calculate am income tax rate based on "the remainder" of your income.

Using your math. If the exclusive rate of "the remainder" of my income was 4% what was my inclusive rate?

1,275 posted on 05/25/2005 8:09:16 AM PDT by lewislynn ( Is calling for energy independence a "protectionist" act?)
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To: lewislynn
it isn't possible to calculate am income tax rate based on "the remainder" of your income.

Yes, it is. Indeed it is one of two common ways to calculate percentages. Indeed it is the method of calculation YOU insist must be used in certain cases... but it can be used in any case you wish.

CASE: I pay $20 in tax and "the remainder" after paying tax is $80.

There obviously IS a remainder of income after tax, duh.

There is more than one way to figure the rate of tax, as explained:

1) 20/100 or 20% this is the tax inclusive method ie the amount of tax is included in number you're dividing (100 in this case)
2) 20/80 or 25% this is the tax exclusive method ie the amount of tax is not included in the number you're dividing (80 in this case).

Obviously, the dollar amount of tax is the same. The rates are different because each uses a different whole with which to figure percent.

That you insist that this isn't possible after numerous examples is curious.

1,277 posted on 05/25/2005 8:24:21 AM PDT by Principled
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To: lewislynn

Try this, looey. A rate (which is what the discussion is about) if a ratio - a number. It says nothing about requiring income or anything else for that matter.

The income tax rates are given as tax inclusive (by your reckoning a dishonest, fraudulent technique) and to compare THE RATES, the FairTax (or any other tax system) should also use tax inclusive - which it does.

Both systems could just as easily be expressed as ratios using tax exclusive rates which you think is the only "honest" ratio. Either way the ratios can be validly compared only if both ratios use the same basic technique - t-i or t-e.

Am I talking to a wall here, or what???


1,279 posted on 05/25/2005 8:27:23 AM PDT by pigdog
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