"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…"
"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…"
"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…"
"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…"
"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…"
"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…"
"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…"
"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…"
"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…"
"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…"
"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…"
"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…"
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