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To: Always Right
Once the 30% sales tax is added, prices go up 30%.

As all Fair Tax opponents do, you lie about the tax rate. It is a 23% inclusive rate. Not a 30% exclusive rate.

At least be honest in your commentary. Though that is usually not the case with Fair Tax opponents. They always lie and change the terms.

75 posted on 05/11/2007 9:53:23 AM PDT by Phantom Lord (Fall on to your knees for the Phantom Lord)
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To: Phantom Lord
They always lie and change the terms.

Well, they really don't have much choice. Defending the income tax is a tough slog...

76 posted on 05/11/2007 9:54:18 AM PDT by EternalVigilance ("Romney seems to be Giuliani-lite, only slicker. No thanks." - Jim Robinson)
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To: Phantom Lord
As all Fair Tax opponents do, you lie about the tax rate. It is a 23% inclusive rate. Not a 30% exclusive rate.

???? A 23% inclusive tax rate is a 30% exclusive tax rate. The bottom line, a $100 untaxed item will be $130 under the fair tax. Whether is it calculated as 23% of $130 or 30% of $100 (like how every state does it) is mute. Calling it a 23% inclusive tax is just misleading as no one outside of the fairtax crowd have any idea what you are talking about.

78 posted on 05/11/2007 10:00:41 AM PDT by Always Right
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To: Phantom Lord
As all Fair Tax opponents do, you lie about the tax rate. It is a 23% inclusive rate. Not a 30% exclusive rate.

That means exactly the same thing. A 23% inclusive tax is just another name for a 29.87% exclusive tax.

The FairTax FAQ explains this pretty well in its answer to question #47:

47. I know the FairTax rate is 23 percent when compared to current income and Social Security rate quotes. What is the rate of the sales tax at the retail counter?

30 percent. This issue is often confusing, so we explain more here.

When income tax rates are quoted, economists call that a tax-inclusive quote: “I paid 23 percent last year.” For every $100 earned, $23 went to Uncle Sam. Or, “I had to make $130 to have $100 to spend.” That’s a 23-percent tax-inclusive rate.

We choose to compare the FairTax to income taxes, quoting the rate the same way, because the FairTax replaces such taxes. That rate is 23 percent.

Sales taxes, on the other hand, are generally quoted tax-exclusive: “I bought a $77 shirt and had to pay that same $23 in sales tax." This is a 30-percent sales tax. Or, “I spent a dollar, 77¢ for the product and 23¢ in tax.” This rate, when programmed into a point-of-purchase terminal, is 30 percent.

Note that no matter which way it is quoted, the amount of tax is the same. Under an income tax rate of 23 percent, you have to earn $130 to spend $100.

Spend that same $100 under a sales tax, you pay that same tax of $30, and the rate is quoted as 30 percent.

Perhaps the biggest difference between the two is under the income tax, controlling the amount of tax you pay is a complex nightmare. Under the FairTax, you may simply choose not to spend, or to spend less.


109 posted on 05/11/2007 1:58:02 PM PDT by snowsislander
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To: Phantom Lord
As all Fair Tax opponents do, you lie about the tax rate. It is a 23% inclusive rate. Not a 30% exclusive rate.

I don't believe anyone cares about terms for comparing NRST and income taxes. I think people care about what actually comes out of their pockets when they purchase an item.

Tell me, if the NRST is implemented and I buy an item that costs $100, how much actually comes out of my pocket to pay for the item, about $123 or about $130?

119 posted on 05/11/2007 3:20:52 PM PDT by William Terrell (Individuals can exist without government but government can't exist without individuals.)
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