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To: Cheburashka
A 23% percent sales tax rate? On every purchase? Oh, that’ll happen.

Actually, it's 29.87% when stated as a normal sales tax rate.

If you are comparing it with an inclusive tax rate such as an income tax then it's reasonable to call it 23%, but most people think of sales taxes as exclusive, i.e., calculated on top of the sale, not as part of the sale price.

For instance, if you buy a $100 coat under the FairTax regime, you will pay a total of $129.87 with FairTax included, not $123.

The 23% inclusive rate comes from you paid $29.87 in tax on the whole $129.87 paid out ($29.87 / $129.87 = 23%).

I myself find it very misleading for fellow FairTax advocates to state a sales tax as an inclusive tax rate since virtually no other sales tax is stated as such. I am in favor of a national retail sales tax, but I am not in favor of trying to mislead anyone as to the actual tax rates involved.

7 posted on 04/19/2007 2:28:13 AM PDT by snowsislander
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To: snowsislander

WRONG! Read the book. The $100 coat has an inbedded tax when you buy it. 23%. If That is removed the coat is actually 77 dollars. Now when you buy the coat add on the 23% and the coat is still a hundred dollars.Not 123.00 Want to get around that? Buy it used and no tax.Same with cars and the like.This is really a great idea because you can decide how much tax you pay not the other way around. Like I suggested. Read the fair tax book.Or you can go to FAIR TAX .ORG.


16 posted on 04/19/2007 4:48:25 AM PDT by HANG THE EXPENSE (Defeat liberalism, its the right thing to do for America.)
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To: snowsislander

“For instance, if you buy a $100 coat under the FairTax regime, you will pay a total of $129.87 with FairTax included, not $123.”

That is completely wrong. You either haven’t read the Fair Tax plan (or the book that explains it) or you are deliberately misrepresenting it.


19 posted on 04/19/2007 5:40:41 AM PDT by navyguy (We don't need more youth. What we need is a fountain of SMART.)
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