[Action-America]

Everyone knows Joe doesn't pay taxes, Joe's company only collects, then remits the taxes. < /sarcasm >

Sarcasm aside, Joe's company, being a distributor (middleman), does not even collect taxes.

Using the nst logic, If you eliminate Joe's taxes...

You can't eliminate Joe's taxes.  You only shift them to Joe's consumption side.  But, what you do accomplish is to tax Jose at the same rate as Joe, thus eliminating the Citizenship Penalty.

and IF he lowers his prices accordingly his net income/profit would be the same as now.

True.  But, you miss the point.  Since Joe could reduce his prices under the NRST, he could compete with Jose, who would no longer have that huge income tax advantage.  In fact, Jose would be paying additional taxes, under the NRST, since he would pay that tax every time he makes a retail purchase (just like Joe).

I used the example of a sole proprietorship distributor to make it easier for everyone to understand.  But, I see that even that simple example was over the head of some folks.

under your NST ... the labor intensive service industries would have to (if they could) RAISE their prices 30% if they wanted to offset the new tax...

DUH!

Since a large part of a service industry's costs are employment taxes, the elimination of employment tax under the NRST, would enable them to reduce their prices even more than non-labor intensive businesses.  Now I understand why you failed to grasp the very elementary example that I presented earlier.

 

[Taxman]

"Citizenship Penalty"

Have I your permission to use this phrase in my presentations? I really like the image it conjures up.

BTW, arguing with LurkeyLooneyLiarLewis is a waste of time. On the upside of that, however, while not being able to budge LooneyLurkeyLiarLewis off of his indefensible position, you educate others.

The essential point that those who are opposed to the NRST fail to recognize is that when the tax cost of government is removed FRom businesses cost buildup calculations, competition in the wholesale, jobber and retail market place will force the final retail price consumers pay down by an average of 25%.

If we can drive that point home to the disbelievers, including those in the Bush Administration and in the House and Senate (the naysayers are, for the most part, lost forever to us), we will win, virtually overnight.