To compare exclusive rates to inclusive rates is to attempt to dupe people with misleading and false information and arguments.
The reason they calculate the rates the way they do is to compare it on an apples to apples basis to the taxes it will be replace, income, fica, etc... becuase those are INCLUSIVE rates.Sure, that's what they claim. But that's just a rationalization. We all know the real reason is that 23 is a smaller number than 30 and that they can get people like Thermalseeker believing the FairTax is less than it actually would be. He's evidently even read the book by the Boortz and Linder and didn't get this.
The reason they calculate the rates the way they do is to compare it on an apples to apples basis to the taxes it will be replace, income, fica, etc... becuase those are INCLUSIVE rates.No it isn't. It's because the law was written for the business collecting and remitting the tax. The 23% rate is not a sales tax rate for the consumer. The 23% rate is the rate businesses have to pay on their gross payments...IOW it's a "gross payments rate" and in order for the business to stay in business after sending 23% of their gross income is to charge you 30% tax on your purchases.
SEC.101
Get it?
`SEC. 101. IMPOSITION OF SALES TAX.
`(a) IN GENERAL- There is hereby imposed a tax on the use or consumption in the United States of taxable property or services.
`(b) Rate-
`(1) FOR 2005- In the calendar year 2005, the rate of tax is 23 percent of the gross payments for the taxable property or service.
`(2) FOR YEARS AFTER 2005- For years after the calendar year 2005, the rate of tax is the combined Federal tax rate percentage (as defined in paragraph (3) of the gross payments for the taxable property or service.
`(3) COMBINED FEDERAL TAX RATE PERCENTAGE- The combined Federal tax rate percentage is the sum of--
`(A) the general revenue rate (as defined in paragraph (4), and
`(B) the old-age, survivors and disability insurance rate, and
`(C) the hospital insurance rate.
`(4) GENERAL REVENUE RATE- The general revenue rate shall be 14.91 percent.
.....
`SEC. 501. MONTHLY REPORTS AND PAYMENTS.
`(a) Tax Reports and Filing Dates-
`(1) IN GENERAL- On or before the 15th day of each month, each person who is--
`(A) liable to collect and remit the tax imposed by this subtitle by reason of section 103(a), or
`(B) liable to pay tax imposed by this subtitle which is not collected pursuant to section 103(a),
shall submit to the appropriate sales tax administering authority (in a form prescribed by the Secretary) a report relating to the previous calendar month.
`(2) CONTENTS OF REPORT- The report required under paragraph (1) shall set forth--
`(A) the gross payments referred to in section 101,
`(B) the tax collected under chapter 4 in connection with such payments,
`(C) the amount and type of any credit claimed, and
`(D) other information reasonably required by the Secretary or the sales tax administering authority for the administration, collection, and remittance of the tax imposed by this subtitle.
Oh BTW, your $100 shelf price being tax inclusive couldn't be more wrong (no matter how many times you post it)
`SEC. 510. TAX TO BE SEPARATELY STATED AND CHARGED.
`(a) In General- For each purchase of taxable property or services for which a tax is imposed by section 101, the seller shall charge the tax imposed by section 101 separately from the purchase. For purchase of taxable property or services for which a tax is imposed by section 101, the seller shall provide to the purchaser a receipt for each transaction that includes--
`(1) the property or services price exclusive of tax;
`(2) the amount of tax paid;
`(3) the property or service price inclusive of tax;
`(4) the tax rate (the amount of tax paid (per paragraph (2)) divided by the property or service price inclusive of tax (per paragraph (3));
`(5) the date that the good or service was sold;
`(6) the name of the vendor; and
`(7) the vendor registration number.
`(b) Vending Machine Exception- The requirements of subsection (a) shall be inapplicable in the case of sales by vending machines. Vending machines for purposes of this subsection are machines--
`(1) that dispense taxable property in exchange for coins or currency; and
`(2) that sell no single item exceeding $10 per unit in price.