Buffett rule

[merrylander]

Originally Posted by JJIII

They say (Fairtax.org) the rate would be 23% for it to be revenue neutral.

There goes the $4.00 gallon.

[JJIII]

Originally Posted by BlueStreak

Yep, I have seen the "National Sales Tax" idea presented a number of times, but, always without numbers. I'm thinking that in lieu of any other tax, it would end up being "pretty hefty" as well. And steeply inflationary, in the short term. Think everything is high now, slap a ~20-25% sales tax on it.

Dave

The embedded taxes would disappear on products, lowering the prices. The merchants would be compelled by market forces to lower their prices as well. The Fair tax would then be added at time of purchase. The net change would be very small.

[JJIII]

Originally Posted by merrylander

Let me see, we do all of our spending here in the USA. The wealthy do a lot of their spending abroad. SS is a fair chunk of most senior's income,as is Medicare, if the payout is to be maintained then this national sales tax is going to be pretty hefty. It sounds good but without the numbers it meaningless.

The numbers can be found here...

http://www.fairtax.org/PDF/Tax%20Not...0FT%20rate.pdf

[JJIII]

I've got to go. All of the questions are answered at the web site or in this book...

http://www.amazon.com/FairTax-The-Tr.../dp/0061540463

[noonereal]

Originally Posted by JJIII

I've got to go. All of the questions are answered at the web site or in this book...

http://www.amazon.com/FairTax-The-Tr.../dp/0061540463

Good one. I had no idea you were pulling my chain until now.

[JJIII]

Originally Posted by noonereal

Good one. I had no idea you were pulling my chain until now.

Believe it or not Noon, I'm laughing.

Tell me you read the material and show me valid arguments against the idea and I'll be glad to listen. To just dismiss it because you don't like the author and haven't considered all the aspects is your loss, not mine.

[noonereal]

Originally Posted by JJIII

Believe it or not Noon, I'm laughing.

Tell me you read the material and show me valid arguments against the idea and I'll be glad to listen. To just dismiss it because you don't like the author and haven't considered all the aspects is your loss, not mine.

On a serious note I read way more of your links than I had intended and honestly it helped to shape my opinion on this as I really did not have one as I had said.

[BlueStreak]

Originally Posted by JJIII

The embedded taxes would disappear on products, lowering the prices. The merchants would be compelled by market forces to lower their prices as well. The Fair tax would then be added at time of purchase. The net change would be very small.

That's the part I don't buy.

The embedded taxes may disappear, but will those savings really be passed onto the consumer, or would that money simply end up in the pockets of business owners and stockholders?

[JJIII]

Originally Posted by BlueStreak

That's the part I don't buy.

The embedded taxes may disappear, but will those savings really be passed onto the consumer, or would that money simply end up in the pockets of business owners and stockholders?

If the merchant can get it cheaper from the manufacturer and everybody knows that, then merchants will compete with each other on prices. If Joe Blow and his competitor get the widget at a reduced rate and Joe doesn't pass the savings along to his customer, then the customers go down the street to the next store, lured by a lower price.

[merrylander]

Originally Posted by JJIII

If the merchant can get it cheaper from the manufacturer and everybody knows that, then merchants will compete with each other on prices. If Joe Blow and his competitor get the widget at a reduced rate and Joe doesn't pass the savings along to his customer, then the customers go down the street to the next store, lured by a lower price.

Unless all the store owners get together and agree on a higher price. I do think that has been done before IIRC.