Yeah, you pretty much got it. I don't care that "Corporate tax rates are 39% - federal - for any corporation earning over $75,000", and, quite frankly, I wonder why you do. I'm interested in the AVERAGE corporate tax rate. Why aren't you?
"So, to continue, if the drug dealer buys an item from a corporation that pays no federal taxes, he is still paying nothing."
The item the drug dealer buys from a corporation contains the cost of the labor to manufacture it. The cost of labor includes 7% FICA (employer) plus 9% FICA/Medicare (employee) plus employee withholding (15-20%), all of which flows directly from the employer to the federal government.
The drug dealer is paying these federal taxes today -- they're embedded in the price of the item today.
The Fair Tax would simply make them visible.
"Dude, look under the surface if you have an IQ above room temperature."
Dude, you're embarrassing yourself again. According to the link YOU provided, "During the 1990s, corporations as a group paid an average of 25.3 percent of their profits in federal corporate income taxes, according to new Congressional Research Service estimates."
Let's see. I used 25%. Gosh, I was off by .3%.
The drug dealer is paying these federal taxes today -- they're embedded in the price of the item today.
It is generally agreed that with the FairTax, the employee will get his share of SS and Medicare in his paycheck, plus what would have been with held under the income tax. So business has no savings to pass on there, plus the 30% FairTax will be added to the final price of the good or service,