"Yes, they are. If a company has any expense (taxes or otherwise) that will be recovered through income. If not, the company will go out of business. On the smaller profit margin, it is true that they take a hit there, but remember that as long as…"
Replace All Federal Taxes on Income with the Fair Tax Act , HR 25 and S 122
KC's Discussions
FT and Embedded Taxes (Econ Question)
Started this discussion. Last reply by Randy Stone May 28, 2009. 31 Replies 0 Likes
FairTax Questions
Started this discussion. Last reply by Jim Tomasik Apr 24, 2009. 5 Replies 0 Likes
KC's Page
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"Mr. McLaren, There was discussion on "forum Okay folks so..." Talking about the Fed Res $ authority. Perhaps you were already on there, saw a number of Mac's. I am not familiar w/ the term "accomodation" from Fed. The fella…"
Todd McLaren replied to KC's discussion FT and Embedded Taxes (Econ Question)"Thanks for this Ron. One of the arguments in the Hewitt book is that the 20-25% of embedded taxes includes labor rates that *can't* be taken out of the equation in order to lower prices.
I'd sure like to see a detailed chart of what costs…"
Todd McLaren replied to KC's discussion FT and Embedded Taxes (Econ Question)"Pretty terrific, Matt. Without the comparisons I wouldn't have thought that after the FairTax, many things would actually cost LESS.
In fact, your hypothetical dentist visit takes into account the Medical Deduction--something most healthy…"
Todd McLaren replied to KC's discussion FT and Embedded Taxes (Econ Question)"True. Paying taxes on what we don't even OWE yet. ...hey, did I mention that was a *government* idea?"
Art Villa - Global Perspective replied to KC's discussion FT and Embedded Taxes (Econ Question)"To me, it is very simply. Embedded taxes (mainly "Corporate" and "Payroll" taxes) and the cost of tax compliance add to the cost of doing business and, therefore, must be priced into the product/service offering. If competitive…"
Ron Wenrich replied to KC's discussion FT and Embedded Taxes (Econ Question)"I think the income tax part of the equation is a rough thing for many people to understand. The business is paying for labor rates at a given rate. Their only obligation is to pay the 7.5% of their half of Social Security.
Where the income tax…"
RC Woodworth replied to KC's discussion FT and Embedded Taxes (Econ Question)"Yes Pat - in fact the 9% figure for business embeds came from an opponent. I stipulated that I would allow him to define embeds and he did as only hard costs - total business taxes - ends up about 9% of prices. Like many opponents. I don't…"
Pat Conroy replied to KC's discussion FT and Embedded Taxes (Econ Question)"RC -- that's a great way to explain the FairTax and embedded taxes. I imagine it's easier for most people to comprehend how much they have to earn to buy something for X dollars. It also pegs the seller's embedded taxes at a lower…"
Nancy L. Gatchel replied to KC's discussion FT and Embedded Taxes (Econ Question)"Matt, I like your first draft. Hopefully, you can take some of the suggestions and info provided by others here and make yet a more accurate chart. I'm certainly impressed by your work. When complete, I'll copy it off and use it, if…"
RC Woodworth replied to KC's discussion FT and Embedded Taxes (Econ Question)"I agree with your main assertion - that the law of supply and demand dictates everything.
However, what I don't understand from your post is the use of the word "embedded". If I understand you right, "embedded" means tax…"
Marc Bohemier replied to KC's discussion FT and Embedded Taxes (Econ Question)"To start with all and any monies a corporation or business recieves or ever pays out in taxes or labor or any other type payment always comes from the consumer to start with. Without the consumer no business or corp would even exist. To state the a…"
"wow!! This is a fabulous discussion. One thing that many taxpayers do not understand is that many businesses have to file quarterly and pay ahead (what is the word for this?). That we not only have "income" taxes, but a litany of…"
Ron Wenrich replied to KC's discussion FT and Embedded Taxes (Econ Question)"According to FairTax.org, the amount of embedded taxes on a new home range from 12 to 20%. They also attacked the problem a little differently. They used the amount of money that needed to be earned to pay for a home where income is taxed vs the…"
Dwayne Thompson replied to KC's discussion FT and Embedded Taxes (Econ Question)"Hey Matt, that sounds very interesting. Would you please send me what you come up with. I'd be very interested in seeing your work. Thanks.
fusionpastor"
Comment Wall (1 comment)
- At 9:12pm on April 27, 2009,
Marilyn Rickert said… - Hi KC!
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