Bullshit, it's a lie and it's mathematically impossible.Taxes are imposed on gains and profits. Anyone still in business knows they aren't paying 20 to 30 percent of their gross in federal income tax.
You overlook payroll taxes lewislynn, which are also repealed under the NRST. The combination of repeal of both income and payroll taxes along with the reductions of the costs complying with those taxes make up the reductions in producer goods that make reduction in retail prices possible.
The following article covers the mechanism on how the current Federal tax system propagates and is embedded into consumption expenditure.
DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?
by D. Sherman Cox J.D. L.L.M. Taxation
The 24% in the article considers only those factors actually paid to government out of imposititions on business in complying with the income, payroll, excise & tariff tax laws.
I refer you to the section of the following article about the Income/Payroll tax system and its impact on our economy "A. Hidden Upstream Taxes. " paragraph 39.
"[39] Dr. Dale Jorgenson, Chairman of Harvard University's Economics Department, believes that the price of goods and services are inflated by about 20 percent or more by upstream taxes consumers ultimately bear. In a recent paper Dr. Jorgenson estimated the built-in taxes contained in the price of goods and services. /22/ In the chart above, he quantified the hidden component of tax, estimating that producer prices would fall on repeal of upstream taxes an average of about 22 percent."
Looking at the accompanying chart, the range of values from industry to industry appears to be about 12-25%.
Economists Gary and Aldonna Robbins of the Texas-based Institute for Public Policy examined the case of dry cleaning a shirt, with a particular eye toward uncovering the hidden costs of taxes in price.
The Robbin's attributed over 33.6% of "consumer prices" to be due to federal taxation passed on to the customer.
The Federal Tax System
http://www.cbo.gov/showdoc.cfm?index=2125&sequence=0&from=1#pt1
From the Table 1 we may extract the proportionate contributions of each sector of taxes as they contribute to consumer price for the year 2000.
Those tax components which will not change prices as a consequence of enactment of HR25
============================
Adjust for the approximate reduction of interest & cost of tax compliance (
Adjust for a conservative $800 billion cost of tax compliance, Payne '95 estimates 65cents for each dollar of revenue collected, $1264billion) reductions .
Estimated change in consumption prices as consequence of enactment of a National Retail Sales Tax, repealing all business income and payroll taxes:
33.6*(1386.5/1945) = 23.9% reduction in consumption prices
Which more than verifies the Jorgenson empirical study of 22% fall in producer prices.
The two sources are in reasonable agreement, and I see 20-25% a reasonable value to expect retail prices to fall, not only for customers here in the United States, but in our exports as well making them far more competitive on international markets.
I haven't overlooked anything....Employees would get 100% of their wage without deductions, including the payroll taxes normally deducted, you've said so too many times yourself...which one is the lie?
Do the math and show your work.
I haven't overlooked anything, must of what we consume isn't even made here, therefore not subject to payroll taxes.
There would be a huge argument about who would lay claim to the employer portion of the FICA tax...my money's on the employee's winning that one.
Even using your absurd numbers, not all businesses are huge corporations. Take your local plumber or a landlord for example. You can repeal his income tax but he knows that when he goes to spend his new found gains he'll have to pay tax out of the funds someday...no price reduction there.