To: Man50D
"The employer's cost will be considerably reduced because there will be no business to business tax with the Fair Tax."Currently, if my company buys something for resale, my company pays no tax. If my company buys capital equipment, it's tax deductible. So there's no "business-to-business" tax today.
I think you mean that my suppliers will charge me less for their products which means I can charge less to my customer. As I stated before, I don't believe it for a minute.
To: robertpaulsen
Believe it or not as you like, but you're paying for the taxes that your supplier sends to the Feds even though you make not cut a check to the government.
That income tax money has to come from someplace ... or perhaps you think it grows on trees???
35 posted on
04/22/2006 12:06:41 PM PDT by
pigdog
To: robertpaulsen
Currently, if my company buys something for resale, my company pays no tax. If my company buys capital equipment, it's tax deductible. So there's no "business-to-business" tax today.
I think you mean that my suppliers will charge me less for their products which means I can charge less to my customer. As I stated before, I don't believe it for a minute.
You're assumption of what you thought I meant to say couldn't be more off base. Corporations pay taxes to the IRS. This a cost that is passed onto all customers of that business, including other businesses. Each business in turn passes on that cost. The result is embedded/Value Added Taxes(VATS)at each stage of production. Companies are therefore paying a business to business tax. The Fair Tax will eliminate taxes on business transactions. Consequently all embedded/VATS will be eliminated.
47 posted on
04/22/2006 2:19:39 PM PDT by
Man50D
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