The FairTax, Join in!

[Final-Fan]

Eomund said:
What was that all about... wierd...

Hello again FinalFan.

Your argument that $23 is 30% of $77 is correct when talking about an EXCLUSIVE tax rate. This exclusive tax means that the shelf price of the item is $77 and then the effective tax rate at the sales counter is 30% or $23. You have a point if we are talking about an EXCLUSIVE tax.

However the FairTax is an INCLUSIVE tax. This means that the shelf price of $100 already includes the tax rate. It is embedded in the price of goods and services. This means that the rate is 23%. When you take the item to the sales counter NO EXTRA TAX IS ADDED as a part of the FairTax.

Using this 30% vs. 23% argument is now invalid as it has just been answered. Attempts to reuse it will result in the same response.

Fact 1: $23 is still 30% of $77. Fact 2: Most people, when they think of sales taxes, think of your "exclusive" definition. Assertion: You should add this explanation whenever you tell someone about how the FairTax is a 23% sales tax. I think you are overreacting here.