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To: Principled
My question remains; You've said that someone (whoever that is) over counts/double counts taxes. Who says it and which taxes? I think you just don't understand it all and you're mixed up.

I understand it perfectly well. There are roughly $2 Trillion in federal taxes collected. Approximately $1 Trillion comes from Individual Income Tax returns. Only $200 Billion come from Busniess Tax Returns, and approximately $700 Billion are FICA taxes. Roughly $8 Trillion is spent on personal consumption. If your hired guns tell me that there is 20-30% embedded taxes, they are telling me they are counting every penny of the $2 Trillion of taxes collected. There is no other way. But under the Fair Tax, employees will get to pocket $1.35 Trillion of the taxes you are eliminating. That means costs of goods will only be reduced by the remaining $650 Billion. Producers will only be able to reduce their costs 8% under your the Fair Tax Plan when all taxes are accounted for properly, not the 20-30% they lie about. Now what part of this don't you get?

464 posted on 05/18/2005 8:53:38 AM PDT by Always Right
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To: Always Right
If your hired guns tell me that there is 20-30% embedded taxes,

But that's not what they're saying! Prices are inflated by taxes yes, but that isn't the only inflationary component in prices as a result of the income tax system. There are far more costs other than the hard taxes passed along in prices. At least you understand that taxes are expenses passed on in prices.

476 posted on 05/18/2005 9:15:08 AM PDT by Principled
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To: Always Right
Producers will only be able to reduce their costs 8% under your the Fair Tax Plan when all taxes are accounted for properly, not the 20-30% they lie about.

WHere to begin... the costs in hard taxes passed along is 10-15% according to literature, but your 8% is fine. That's only the cost of taxes themselves. THe other income tax-related expenses bring to 20-25%. So they're not lying, you just misunderstand them to mean that the cost of taxes is 20-30%. That's not what they're saying. They're saying the cost of taxes plus the other income tax related costs come to 20-30%.

Now what part of this don't you get?

rotflmao

Go back and read it a little slower. You will see that you're wrong.

482 posted on 05/18/2005 9:20:42 AM PDT by Principled
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