The FairTax, Join in!

[Final-Fan]

Entroper said:

Final-Fan said:

Entroper said:
@senseinobaka: I followed your example perfectly. However, I find it extremely difficult to believe that you can replace a 22% inclusive corporate tax with a 23% inclusive FairTax, completely eliminate the income tax and payroll taxes, and remain revenue-neutral. Please explain.

That's apparently because the 22% figure DOES include things like the income taxes and payroll taxes of the companies' employees. I had this exact same conversation with Eomund earlier in the thread.

OK, so then wages will go down correspondingly with the amount you would be paying in income tax (roughly).  What about the minimum wage?  The minimum wage is set to increase quite a bit over the next couple years, and moving to the FairTax will essentially give all minimum wage earners a hefty raise on top of that.  That's going to cause the price of goods to increase, no question.

Perhaps, but the minimum wage increase has nothing to do with the tax system we are under. It ultimately makes little difference to a person's buying power whether wages are adjusted downward to keep tax-inclusive prices from jumping, or whether employers simply let wages sit where they are (the easier solution) and prices do jump, or something in between those two choices.