FAIRTAX

Nealz Nuze ^ | December 26, 2007 | Neal Boortz

[xcamel]

LOL - I know... I know....

NEVER

[lewislynn]

Of the $125 paid by Joe to the storekeeper, $100 would be for the goods he bought at the store and $25 would be taxes that the storekeeper would send to the government. Joe would not have to file a tax return, as the storekeeper sends the tax in to the government.

Using that idiocy. After the storekeeper sends "23% of the gross payments" to the government he takes a cut in income only getting $96.25 and the government gets a raise...That's what you call fair.

[Your Nightmare]

Is the headline accurate? As far as it goes, yes. But it certainly doesn't even begin to cover the story,

So the headline is accurate but doesn't begin to cover the story. It's a headline! It's not suppose to cover the story. That's what the article is for! Jeez.

Boortz is an idiot.

[Bigun]

Using that idiocy. After the storekeeper sends "23% of the gross payments" to the government he takes a cut in income only getting $96.25 and the government gets a raise...That's what you call fair.

Louis the "workings" of YOUR mind are completely unfathomable and especially so when you attempt to work with numbers!

The post to which you responded contains the following explanation of the numbers contained in the example and I quote below:

We may report the tax rate as $25/$125 = 20 percent, which is the tax-inclusive rate (meaning that the tax is included in the base).

Alternately, we may think of the tax rate as $25/$100 = 25 percent, which is the tax-exclusive rate (meaning the tax is excluded from the base).

The 23 percent FairTax rate set out in HR 25/S 1025 is a tax-inclusive rate, as is the current personal income tax, whereas most state-level sales taxes are quoted on a tax-exclusive basis. For ease of comparison, FairTax.org gives the tax rate both ways. Both rates are relevant, since the FairTax is replacing an income tax system, and 23 percent correctly represents the tax burden compared to the current system.

[CIDKauf]

Going up to 40-50% to pay for unfunded liabiliites of the OASDI trust fund.