what i can’t understand is how the ‘fair tax’ idiots could not see that having to EXPLAIN tax-inclusive it not ridiculously effing STUPID when you could more easily use the tax-exclusive rate LIKE EVERY OTHER SALES TAX
You cannot calculate ‘tax inclusive’ rate in your head
It also is a decpetively LOWER rate
In short - it is a lie for liars and liberals who LOVE the ‘fair tax’ because it is hidden
I want taxes to be as visible as possible and in your face as possible, to maximize people’s dislike of them
Got it?
This straw man “dustup” between “tax inclusive” and “tax exclusive” arose many years ago when the legislation was first introduced. It has been put to rest, except among those who refuse to understand economic language and concepts.
Here is what the FairTax web site FAQ has to say about it at
http://www.fairtax.org/site/PageServer?pagename=FAQs :
“I know the FairTax rate is 23 percent when compared to current income taxes. What will the rate of the sales tax be 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 that 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.”
By the way, the only FairTax idiots I know are those who reflexively reject the FairTax, without studying it. Or ask stupid questions or make dumb statements or make asinine accusations without studying it.
The issue is FReedom, Mr. K, FREEDOM!
We will never be a truly FRee people so long as we have an income tax and an IRS!