“The splitting hairs argument only weakens your position. That is money that would otherwise be saved for your retirement. The Fair Tax will remove that tax.”
I don’t know how you define splitting hairs. The principal, or actual savings portion of a savings account is signifacantly more substantial than the current period’s earnings.
And again, I am not saving money for my retirement. I am spending money from my retirement.
So you now tell me: “Wrong again. You won’t be taxed on used items, nor will you be taxed on necessities up to the poverty level. You are taxed multiple times with every purchase due to corporate income taxes included in the price at each stage of production.”
So here is your advice?: Either pay a second tax on the money you have already paid tax on, cause we are changing the rules or buy all of your stuff second hand and /or live under the poverty level.
That’s very nice of you.
My response: F. Y.
As for the so called Corporate Income Tax that you claim is imbedded in the cost of all products, I believe this is a dream fostered on the public. Having spent over twenty years in the tax department of a major corporation I can tell you that the goal of the corporation was always net book income. Corporate taxes are paid on Net Taxable Income. Anything that adds to the bottom line of a corporation is a resource to pay those taxes. Corporations pay a lot of money to tax professionals in an effort to defer taxes on book income, through timing differences, such as depreciation and depletion but the market is the detemining factor in the price of goods and services. I will grant that payroll and excises taxes are imbedded factors, but not income tax, which is a tax paid on profit.