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.
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.
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.
Gas prices never drop?
The price of electronics never drops?
Market competition doesn't exist?
What world are you living in?
How so? Company A reduces its prices to sell more, Company B does not, wanting to keep the additional profits.
Where would you shop?