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To: Always Right
They're actually doing the most honest thing. Only somebody trying to trick somebody would compare apples and oranges. The Tax-inclusive rate is used because that it is a replacement for the income tax, and income taxes are cited tax-inclusive terms. We could go the other way and compare both in tax-exclusive terms. A 25% income tax is really 33.33% tax-exclusive ($100 - $25 = $75; $25/$75 = 33.33%).
As long as we compare apples and apples we're good to go. If we didn't do that, it would be like there being no price difference between buying some thing in dollars and Euros, only the same price (like 10 dollars or 10 euros) is charged even though the Euro is worth 15% more than the dollar.
17 posted on 04/23/2004 6:55:19 AM PDT by Remember_Salamis (Freedom is Not Free)
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To: Remember_Salamis
They're actually doing the most honest thing.

It is honest, selling a 30% sales tax as a 23% sales tax? It is honest, in your example to include the employer's share of payroll tax as part of the employees tax but not part of their income? It is honest to think that someone who grosses $60K per year pays anywhere close to $12K in federal income taxes? I think the 10% figure is even high once you consider all the deductions.

20 posted on 04/23/2004 7:00:33 AM PDT by Always Right
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To: Remember_Salamis
Only somebody trying to trick somebody would compare apples and oranges.

But when you describe a sales tax with the language of income tax, you are doing exactly that. People aren't going to relate inclusive to exclusive, they are going to relate exclusive to exclusive.

We've had this discussion before. Just imagine trying to explain this inclusive-exclusive thing to a Jay-walking type person who is about to go vote.

50 posted on 04/23/2004 9:01:13 AM PDT by hopespringseternal (People should be banned for sophistry.)
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To: Remember_Salamis
Most people can do regular tax rates in their head- if you have a state sales tax of 8% and you buy something for $100 you know you will pay $108 dollars at the register.

You cannot do the same thing with a 'tax inclusive' rate.
The ONLY reason for using the much more difficult to calculate 'tax inclusive' rate is because the rate SOUNDS lower. In other words, to deceive people.

So then your claim that this is the 'more honest' way to do it is the complete opposite- and adds to the deception by glorfying it as 'more honest'.
72 posted on 04/23/2004 12:24:37 PM PDT by Mr. K (ø¤º°`°º¤ø,¸¸,ø¤º°`°º¤ø,¸¸,I stole this cuz its funny,¸¸,ø¤º°`°º¤ø,¸¸,ø¤º°`°º¤ø))
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