Posted on 08/27/2007 7:53:49 AM PDT by Turret Gunner A20
Anything that creates a NEW way for the feds to tax us is stupid. Yea, yea, abolish the IRS. Repeal the 16th. I’m holding my breath.
Anything that creates a NEW way for the feds to tax us is stupid. Yea, yea, abolish the IRS. Repeal the 16th. I’m holding my breath.
So just sit back and do nothing? That should produce a lot of results.
Read, agreed, shame on Bartlett
Nothing new here. Boortz spends 75% of the article refuting a non-point about CATS. It makes no difference to the debate. Boortz spends the next 25% of the article displaying his ignorance on what embedded taxes are. Bartlet does not get it right either. Boortz is wrong in that all of the embedded taxes will not be removed from the product and Bartlet is wrong to assume that none of them are removed. Out of the 18-23% embedded taxes, at most 8% can be removed without lowering wages and owners profits. Most likely it will be closer to a 5% reduction in costs, but then a 30% tax added on top.
Just as I thought, you really can’t read.
The bigger your income, the bigger your tax and your life insurance.
The bigger your house, the bigger your tax and your house insurance.
Size matters. What’s unfair about that?
All I read by Boortz assumes that the vendor will be forced by “the market” to reduce his prices by the amount of income and other fed taxes; this is fantasy.
I haven’t seen a Thompson position on the “Fair Tax”.
Fantasy?
Ok, you own a business. Your competitor across the street drops his prices. What do you do? Keep your prices up and lose customers and go out of business, or follow suit to remain competitive?
Or are you the first to drop prices to try and get his customers to come to you over him?
You don't believe cometition can and does affect prices????
That is truly amazing.
I am sure that models have been run on this, I have not done the research.
Read later. It’s gonna be a rough thread!
Simplify the existing tax code.
Great plan! Will work wonders.
Never mind that in the past 10 years there has been in excess of 10,000 changes to the tax code.
So, simply today, change tomorrow.
What is accomplished?
People who think the market doesn’t apply to prices post “fair tax” probably think that gravity doesn’t apply to airplanes.
This article quibbles about the percentage, when it’s the concept of eliminating income taxes that is the real issue.
It’s the same as the flat tax - as soon as you state a percentage, there goes the caterwahling about the rate, instead of the concept.
A large portion of the embedded taxes are the income and payroll taxes paid by the employee. One thing I haven't seen is the analysis on whether prices would drop by the amount of the embedded taxes along with a matching drop in pay, or will the typical pay stay the same requiring an increase in the after tax prices. I personally believe that the pay is "stickier" (I'm sure there's a real economic term for that) than prices. Thus even if you remove the employers' SS tax and profit taxes, you'll drop prices by less than 10% and after taxes they will go up by about 20%.
Even with that, I still like the idea of eliminating the tax on production and replacing it with a tax on consumption. I also like that it will treat imports and domestic production the same, unlike our current system which gives a disadvantage to domestic production.
So you basically will have a tax free salary of your current net salary.
I how much of each dollar is embedded taxes? How is getting rid of the income tax going to do away with the embedded taxes? Are those added costs to make up for the sellers income tax liability? I do find it amazing that their are americans that actually argue for the intrusive and confiscatory income tax. We have come a long ways from colonists times.
Please go to
http://www.fairtax.org/site/PageServer?pagename=about_faq
I think your questions will all be asnwered there.
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