[Bigun]

Without the employer seeing those savings, the employer can not significantly reduce his prices.

Why do you persist in trying to make the spurious argument that the only costs imposed by the income tax system are the taxes themselves when you KNOW that to be untrue?

"All goods and services produced in the United States already contain the embedded costs of the current tax system in their prices." is a far cry from embedded taxes only!

[sitetest]

Dear Bigun,

"Why do you persist in trying to make the spurious argument that the only costs imposed by the income tax system are the taxes themselves when you KNOW that to be untrue?"

Well, Dr. Jorgenson seems to disagree with you:

RobFromGa: "Excuse me for my lack of understanding of your answer, when you say 'workers would keep that after-tax pay' are you saying that if they are making $1000 a week now, and paying $200 payroll+income taxes now, that under the FairTax you were assuming that workers would get paid $800 and keep all of that? Or are you saying that you meant they would make $1000 under the FairTax?


Dr Jorgenson: "I am saying that the worker would continue to receive the after-tax amount of $800. Prices received by producers would decline to cover the cost of after-tax wages to workers and after-tax dividends and interest to investors."

The savings come from not having to pay the taxes.

Take it up with Dr. Jorgenson.


sitetest

[Always Right]

"All goods and services produced in the United States already contain the embedded costs of the current tax system in their prices." is a far cry from embedded taxes only!

Yes, but Jorgenson clarified this comment and made it crystal clear that Jorgenson was figuring that employee take home pay would remain constant.....meaning employees have to take a pay cut. I know you are one who will remain in denial. But that is not my problem.