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To: Dimples

OK. How about your own reposting of his responses to RobFromGA?:

"A more reasonable interpretation of my 1996 testimony is that workers would keep that after-tax pay; producers' prices would fall, but retail prices would be increased by the national retail sales tax. Any gains by workers and investors would be the result of increase economic efficiency."

Going to a consumption tax reduces the tax wedge on upstream businesesses, as producer price falls quantity of goods sold as exports increase resulting in reduction of deadweight losses.

Those deadweight loss reductions are a factor of change in supply demand equilibrium, not tax related overhead. The economic efficiency gains in production arise from the fact that upstream businesses no longer pay income/payroll taxes per-se. Tax related overhead is a separate issue from these deadweight factors.

494 posted on 08/29/2005 11:45:56 PM PDT by ancient_geezer (Don't reform it, Replace it!!)
[ Post Reply | Private Reply | To 491 | View Replies ]


To: ancient_geezer
Is there a point to your post 494?

I must say, you are a master at completely evading conversation and debate.

I say: "The weather sure is nice!"

You say: "Spoons don't fit in the lock very well."

I say: "Hmmm, maybe you need a different tool to open that lock."

You say: "I do not! Green cows work just fine!"

If your goal is frustration through obfuscation, you're pretty good. If you goal is common ground and understanding, you'll need to work a lot harder.

497 posted on 08/30/2005 12:05:42 AM PDT by Dimples
[ Post Reply | Private Reply | To 494 | View Replies ]

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