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Is Fair Tax 23% or 30% of the product cost?As I understand it, a $1.00 item marked for sale at a price of $1.00, will cost you $1.30. If one divides .30 tax by $1.00 dollar cost one gets 30% tax on the sale! However, if one divides the .30 cent tax by $1.30, the customers cost, one gets 23% as a number! Now, what am I buying: a dollar item for $1.30, or am I also buying some tax? I suspect that the fair tax people will say, "but yeah, the price would be more than $1.00, as marked, if you want to figure that way!" If you agree with that last statement, I guess figures don't lie, but liars do figure! Don't we have a 7% sales tax now? Folks, it is a "mark-up" of 30%, but it ia 23% of the total of the product cost plus the sales tax! Bonkers's blog | login to post comments |