[ale] OT fairtax isn't

[Greg Freemyer]

On 3/16/07, Sean Kilpatrick <drifter at oppositelock.org> wrote:
> On Friday 16 March 2007 20:38, Byron A Jeff wrote:
> |  For example take a 35% external tax rate. So if you spend
> | $1 on a good, then you pay $0.35 in tax. The embedded tax rate would
> | be $1 including tax. But the amount spent on the good if the good+tax = $1
> | is $0.74. So $0.74 goes for the good and $0.26 on the tax. Since you spent
> | $1 and paied $0.26 in tax, they call that tax rate a 26% rate.
> |
>
> That's interesting math. Not correct, but interesting.
>
> If an item costs $74 and the tax is $26, then the total paid is $100.
> The tax rate on the transaction is 35.1%, _not_ 26%
>
> Sean

I assume the goal of the fair tax people is consistency.  Today if you
earn $100 and uncle sam takes $33 you call it a 33% tax.  Maybe you
should call it a 50% tax because for you to take home $67 you have to
give uncle sam $33.

Greg
-- 
Greg Freemyer
The Norcross Group
Forensics for the 21st Century