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To: pigdog
the sales tax rate will greatly decline in most states to quite a bit less than half its present figure. In CA, for example I think it would drop from 7.75% down to the 2% or 3% range.

Another delusion, piggie. Or do you have a basis for this claim that would stand up to examination?

752 posted on 06/12/2005 11:16:32 AM PDT by expatpat
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To: expatpat
Another delusion, piggie. Or do you have a basis for this claim that would stand up to examination?

Broader tax base, lower rate. Narrower tax base, higher rate.

What is so hard to understand about that?

753 posted on 06/12/2005 11:18:42 AM PDT by EternalVigilance ("Quality of life": Another name for the slippery slope into barbarism...)
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To: expatpat

Let's say the tax rate is 7.75% (it varies by location in that state as in some others). The tax base presently is on a very restricted range of things with many exemptions, exceptions, exclusions, and special situations. It is nowhere near the entire consumption base since only tangible things are involved for one thing.

Conforming the sales tax to the FairTax would actually easily more than double the tax base since now services would be taxable as well and services typically are more than half of the dollar amount of consumption.

In addition, all exemptions, etc. (and there are thousands) would disappear raising the tax base further.

It is easy to see, then, that the tax base would about triple (or perhaps be even larger) which would bring the required sales tax rate into the 2% to 3% range.

It's pretty straightforward, actually.


763 posted on 06/12/2005 11:57:18 AM PDT by pigdog
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