You say:
"His employees get their whole paychecks including FICA and payroll, but the owner of the business doesn't get to keep his whole earnings and is expected to give up his income tax savings?"
You didn't read the book or do much research. The owner of the business DOES get to keep everything he makes.
You didn't read the book or do much research. The owner of the business DOES get to keep everything he makes.Then where do the 20% price reductions come from?
I agree that this is the way it is promoted, I was just responding to your statement in post 13,
woodbeez: You forget that Bob the Baker pays income tax on his profit from sales. Businessess pay no taxes under the Fairtax. That is his main source of savings that he would be able to pass on to his customers
This sounded to me like you felt that Bob was going to pass along his income tax savings back to the Bakery to enable them to lower the cost of the bread, since you called Bob's income tax "his main source of savings" and also that these income tax savings would be "passed on to his customers". I guess you've changed your position.
Obviously, Bob cannot both keep his income tax savings and at the same time pass the savings along to the customer. This would be double counting, hust like saying that George can keep his entire paycheck and yet somehow George's employer is saving money on George's labor.