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To: frogjerk
So the customer is paying $100 for a $70 item? What's the difference?

There is a big difference. The way Always Right wrote it up, if you purchased a $100 item you would pay $130 (he then jumped it to $137 because he claims that states would have to drop their income tax and switch to a sales tax, which they won't).

And the reason it is different is because the tax inclusive (pay $100, retailer gets $70, gov. gets $30) comparrison is how you have to do it for an apples to apples comparrison with income taxes.

Just like with income taxes. And I'm using easy round numbers here for ease. If you earn $1,000 you send $300 to the government and keep $700. You don't keep $1,000 and then send $300 to the government.

In the end it works out the same either way, but for an apples to apples comparrison, one must used the tax inclusive method.

32 posted on 06/10/2005 11:47:54 AM PDT by Phantom Lord (Advantages are taken, not handed out)
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To: Phantom Lord; frogjerk

One problem with your numbers, PL... the $100 item would be $77 for the seller, $23 for the feds, not 70/30.


42 posted on 06/10/2005 11:53:21 AM PDT by kevkrom (Jack Bauer / Chloe O'Brien '08)
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To: Phantom Lord
In the end it works out the same either way, but for an apples to apples comparrison, one must used the tax inclusive method.

In a tax inclusive system, would the seller be required to itemize the taxes and products?

45 posted on 06/10/2005 11:55:39 AM PDT by frogjerk
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To: Phantom Lord
(pay $100, retailer gets $70, gov. gets $30)

23% of $70 is $16.10. Total cost $86.10, not $100. Even 30% of $70 is $21 for a total of $91.

100 posted on 06/10/2005 12:17:47 PM PDT by Blood of Tyrants (G-d is not a Republican. But Satan is definitely a Democrat.)
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To: Phantom Lord

You make the assumption that the retailer who is currently selling a product for $100, will be happy to only get to keep $70. This is illogical. The retailer will continue to want to receive the same amount of money for his product, and, in order to do so, will raise the price so that after the tax, he still makes his $100.


1,036 posted on 06/13/2005 4:28:01 AM PDT by An.American.Expatriate (Here's my strategy on the War against Terrorism: We win, they lose. - with apologies to R.R.)
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