Re: (OT) Bet you're gonna wish for the Fair Tax now...

"The Pinnacle of Cynical [was LH]"
<llllkkkldhzztrd@don'tspamstopthespamminggmailspot.com> wrote in message
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In article
<b48b100b-0647-41ba-a9b2-44d23ffc4284@xxxxxxxxxxxxxxxxxxxxxxxxxxxx>,
"Torrey M. Spears" <nwophoenix@xxxxxxxxx> wrote:

On Feb 1, 10:38 pm, "The Pinnacle of Cynical [was LH]"
<llllkkkldhzztrd@don'tspamstopthespamminggmailspot.com> wrote:
In article <13q7d6uks5jm...@xxxxxxxxxxxxxxxxxx>,
"Lord Gow333, Conservative Fullback!" <lord...@xxxxxxxxx> wrote:


The cost of everything rising 30% will never work.


you, of course, understand the fair tax is a 23%

Incorrect. It is 30%. The 23% figure is a lie from the proponents of
the fair tax. The price of an item is $1.00. After applying the tax the
price will be $1.30. That is an increase of 30%. The fair tax people say
"30¢ off of $1.30 is 23%." Well it is. But that isn't when the
percentage increase was applied. It's a fucking lie. The government gets
23%. From the new figure. The percentage of increase on the product is
actually 30%.

consumption tax that
would be embedded into the cost of goods sold - i.e. a 50 dollar
camera would cost you 50 dollars, not 56.23 - and the 23% of that 50
dollars would be the consumption tax - which would go straight to the
gub'ment.

Completely wrong. The price "embedded" would increase the price of a
product. The industries are not going to lower the cost of an item and
take the loss because they have the pay 23% of that to the government.
No. That $50 camera is going to increase 30% in price so that 23% of
that will go to the government.

So using your $50 example. The camera costs $50. Add 30% markup. The
sales figure on the floor will be $65. The government takes 23% of that
so that the retailer will make their $50 from it. What your suggesting
is complete bunk.


I was under the understanding if the product has a price of $50 now, it'll
have a price of $50 in the future. The difference is the sales tax gathered.
Right now, I pay 7% in sales tax, so the items costs a total of 53.50 after
tax. With the fair tax, that $50 item after tax would cost $65. The extra
$11.50 goes to the government.

Is this right? Gow, TMS? Am I off base?

I guess I need to go check out the book again and re-read it.


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