[ Please address how the “embedded cost” of income tax claimed by the “fair taxers” is going to magically disappear. ]
The fair taxers eliminate income tax.. more or less..
Im not happy with the “fair tax”...
Even though its better than the current system..
Im for States sending contributions to the federal government..
eliminating any federal government forced taxation..
I don’t know what you are talking about when you say “...claiming business costs will drop because the taxed portion of my gross is “built into” the cost of items produced by the business.”
What I do know is that the proprietor of the business would no longer be paying a matching 7.65% of your salary in payroll taxes and ALL of corporate taxes and all of the costs of compliance currently embedded in the prices of the product(s) or service(s) he sells would be removed under the fairtax. Of course the price drops made possible by this would be much more modest for items with short manufacturing supply chains than those with longer manufacturing supply chains.
The corporate income tax and all the attendant costs of dealing with it are, in practice, nothing more than a VAT. They get passed on from the miner in the price of the ore he sells to the smelter. The smelter passes them on to the steel mill etc. etc until product or service is finally sold to the retail consumer who finally pays them all.