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To: groanup
Okay, you tell me. The income tax has disappeared along with the costs of compliance. Business save how much now? Let's see what we can expect from an anti.
The FairTax base for 2004 would have been ~$9,716 billion. Add $1,173 billion in exports to that (the claim is taxes are embedded in them too) and you get $10,889 billion. This is the amount that is suppose to be reduced by the "embedded taxes." In 2004, corporate income taxes were $189.4 billion, add half of the employment and general retirement receipts ($344.6 billion) and you get a grand total of $534 billion in tax revenue from corporations. That is 4.9% of the FairTax base plus exports. Add an extremely generous $100 billion compliance cost and you get 5.8% of the FairTax base.

If you assume that the incidence of all of these costs is on the consumer (it almost certainly isn't) and that the FairTax would have no uncompensated compliance costs to businesses (it most certainly would, e.g., credit card processing fees), then the most pretax prices could decline is 5.8%. Tack on the FairTax and after-tax prices go way up - more than 20%. And only with the most rosy of scenarios.
66 posted on 10/10/2005 12:03:17 PM PDT by Your Nightmare
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To: Your Nightmare
The FairTax base for 2004 would have been ~$9,716 billion.

What do you mean by "base"? If you're saying that total retail sales in the US for 2004 were 9 billion you're off by a trillion or so.

81 posted on 10/10/2005 2:28:56 PM PDT by groanup (shred for Ian)
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