Fairtax pretends overall prices will come down an amazing 22%, when fairtax "releases" all those taxes from business.
Nonsense. Its wack math. Our family business would save 2%, not 22%.
What FT advocates are doing is -- they are counting ALL the theoretical savings FT has, as being the kind that can lower the price of the final product.
Not so. For example, the business saves 2% of their gross sale price becuase of the elimination of FICA. Whatever the EMPLOYEES save is immaterial -- it just doesnt matter. The business can't lower its prices by what their EMPLOYEE saves.
And thats exactly what FT is doing -- counting (in an absurdly optimistic way) of what ALL parties would save. Then they want the business owner to lower his price that amount -- even if the business didnt save it.
Its crazy. But, much of the FT is.Comment Posted By Mark Curran On 10.02.2008 @ 19:45
Actually, Fairtax does have some great parts -- if it worked.
But thats just the problem: Does the math actually add up?
Do you know that fairtax taxes the federal government, to pay for the federal government?
Neal Boortz wrote "The federal government itself will become a major taxpayer" (Page 148 in his Fair Tax Book,)
Tax the federal government to pay taxes to the federal government ??
Thats like me pretending I can pay myself 10,000 to cut my own grass. I can write the check, I can even deposit the check. And I can do this every day. But at the end of the month, I don't have 300,000 dollars
So the FairTax legislation can mandate the Pentagon pay the US Treasury 200 billion dollars a year for "sales tax"Comment Posted By Mark Curran On 10.02.2008 @ 19:40
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