You also fail to understand embedded corporate incomes taxes, along with compliance costs passed onto the consumer, already amounts to nearly 23% of the price.I've seen this claim multiple times but never any backup. Do you have any?
The Fair Tax will remove those embedded taxes from the price and show that 23% separately on the receipt.
Are you saying that after the income tax is eliminated and the Fair Tax is put in place, prices will be (roughly) equivalent?
I've seen this claim multiple times but never any backup. Do you have any?
The following link is to testimony provided by Dr. Karen Walby(PH.D in Economy) to the House Ways and Means Committee:
Testimony of Karen Walby, Ph.D.
An excerpt from her testimony:
"Paperwork is the most visible compliance cost, but it is clearly not the only cost, and perhaps not the largest cost. Return processing, determining liability, record keeping, and other burdens are an estimated 13 to 22 percent of the total revenue raised by the income tax system."
Add to the compliance costs, at least some of the taxes levied on corporations they in turn pass onto the consumer at each stage of production and the total is approximately 22%.
Are you saying that after the income tax is eliminated and the Fair Tax is put in place, prices will be (roughly) equivalent?
As I stated in post #77 price increases will vary by industry. However imported products will rise by the amount of The Fair Tax rate as they are currently not subject to the U.S. embedded taxes domestic products incur. Any price increase, at least on domestic goods, will be offset by the gain in purchasing power.