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

"Lord Gow333, Conservative Fullback!" <lordgow@xxxxxxxxx> wrote in message
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"Butters" <buttersrspw@xxxxxxxxxxxxx> wrote in message
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"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?

The sales tax you pay now is a state entity and will probably remain
unchanged.

The fair tax is deducted from the sale price by the merchant and sent in
to the government. You never see it happen. It would seem that the
merchant would then have to raise his price to make the same money, but
don't forget that he, the trucker, the distributor, the manufacturer, etc.
are no longer paying any income tax and are therefore not including that
into the price of their services. The item then arrives at the merchant's
door cheaper than it used to, so after he adjusts his price to cover the
FairTax you will pay about the same.

LG

Thank yew! That's exactly what I was looking for. Not the answer so much,
but the brief, concise explanation. Need to check the book out agayne.


.

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