Yes they are my own. I like to do this thing called thinking for myself.
However, I'm happy to explain my reasoning. I even went into several detail analysis with nice equations and numbers when I got sick of people saying that I had to point to someone else's analysis. So far no one has been able to dispute my numbers.
And how do you account for the elimination of all the current embedded federal taxes (average 22%) in the prices of retail products and services?
I'm going to answer your second question question first.
This is a perfect example of why people need to learn to think for themselves and evaluate statements.
The Fair tax proposes replacing personal and corporate income taxes with a consumption tax. When calculated as an embedded tax, the fair tax needs to be 23% of the price of items in order to be revenue neutral.
OK. So now you are saying that the Fair Tax replaces all the existing embedded taxes, which currently add up to 22% of what we pay for something.
So basically you are saying that all personal income taxes payed by everyone in the country can be replaced by a 1% sales tax?
Ya might want to think about that one a bit more and try and understand the numbers you are using a bit better.
The fair tax is supposed to be revenue equal.
People are going to be taking home 10% to 35% more in their paychecks, they aren't going to be paying taxes on capital gains any more, and they will even get prebate checks as well.
They are going to have considerable more money in their pockets. Are they going to be able to buy a lot more? Or are they just going to be paying the taxes at a different point in the process?
Since the tax is revenue equal and is supposed to tax people approximately the same as the are now as well, the only way they are going to be able to pay less overall is because of cost savings due to greater efficiencies in the system.
Well, I hate to break it to you, but the cost of collecting the income tax doesn't amount to 22% of what we pay for goods. The Fair Tax also has it's own costs to collect taxes and sent out the prebate. Even if those costs are lower than our current tax system, the difference sure isn't going to drop the price of goods by much.
Answer this please: Where do you get data or information to show that prices will go up?
I don't know. Let's see. The tax change is revenue equal. They stop taking money out of your paycheck so you have more money, but they instead take it when you buy an item.
Therefore the total cost you pay for an item goes up proportionally. It's seems pretty simple to me. I guess that algebra I took way back in junior high school 24 years ago really is useful.
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OK silly comments that I just couldn't bring myself to not pose aside, what causes the jump in effective prices isn't an increase in taxes, but a change in when they are collected.
The 22% figure on current embedded taxes includes all current taxes including personal income taxes as well as a number of things like excise taxes on goods that the Fair Tax does not replace, like gasoline taxes.
The Fair Tax lets you take home more money, but still collects the same amount of taxes, they just get the portion that are currently taken out of your paycheck when you buy something.
You get more money in your paycheck, but you pay more when you purchase things. It all equals out and is revenue equal. However, the effect is that each dollar actually buys less.
The effect on future earnings is neutral. However, the effect on cash savings is not.
The effect on our national debt is very significant. We basically get to pay back debt with dollars that are roughly worth 20% less. Since this is an intentional act that causes this, it is effectively the same a defaulting on 20% of our national debt. Think our creditors will care?
Got any savings bonds? Got any cash in the bank? Loan anybody any money? Then maybe you should care too. However, if you owe more than you are owed, I guess it works out pretty well for you.
If you move your cash assets into foreign currency you won't get hurt either I guess, but that means a lot of people will be dumping US dollars on the market which brings us back to that whole monetary inflation issue you mentioned earlier.
If you want professional analysis, just reread the papers advocating the Fair Tax, look at what the do say with a more critical eye, and look at what is missing.
Evaluate their comments to see if they are really justified by the facts, and don't let them get off with only comparing to the current tax system, because the current system and the Fair Tax are not our only options.
Ya might want to think about that one a bit more and try and understand the numbers you are using a bit better.
Thinking for yourself? Are you tickled that anyone would even read your posts let alone to respond to them.
Well, think for yourself. I have very little patience with people that think they know something and will tell others they know it all.
So I will leave you with this blurb from your ramblings above that caught my eye, caused my head to shake and made me think to say "don't waste any more time with this one".
Here it is:
So basically you are saying that all personal income taxes...
Did I 'basically' say that? Did I say it at all? No, I did not. And what it reveals is your lack of accuracy and precision or lack of knowledge. Because there are certainly many more taxes that the FairTax eliminates other than the 'personal' income tax.
So there you have it. You got someone to read your post and someone to respond to it. Aren't you the lucky one?