Here's a Subject They All Agree On!!!

[CuteOldGuy]

C'mon, Halfbright. That was lame. You can do better than that. You're getting boring.

[dilbert firestorm]

Originally Posted by CaptainMidnight

Quote:
Originally Posted by dilbert firestorm
you're leaving out the fact that there will be a price reduction at some point when companies & corporations aren't paying any taxes and are taking in too much money.

Actually, no, I am not "leaving out" anything. I have explained in the past that, although "embedded taxes" as a cost component of goods and services are not zero, they cannot possibly be more than a VERY small percentage of the factor claimed by FairTax proponents. (See explanation in the second half of the blog post below.)

there is precedent for this. Not sure what you're referring to here. Could you please explain?

the reference is with the airline industry in the 1980s. prior to 1980, it was highly regulated and many airline paid taxes & fees to FAA and plane tickets were expensive.

with the deregulation of the airlines during the reagan administration, air fares fell to more affordable rates. it took 1 year see the prices fall.

it only takes one company to start the ball rolling to reduce prices, other companies are sure to follow.

[lustylad]

Originally Posted by dilbert firestorm

the reference is with the airline industry in the 1980s. prior to 1980, it was highly regulated and many airline paid taxes & fees to FAA and plane tickets were expensive.

with the deregulation of the airlines during the reagan administration, air fares fell to more affordable rates. it took 1 year see the prices fall.

it only takes one company to start the ball rolling to reduce prices, other companies are sure to follow.

Apples and oranges. Airline fares fell after 1980 because airlines were suddenly free to set their own prices based on competitive factors, instead of having the FAA approve them. It had nothing to do with the removal of "taxes & fees".

[dilbert firestorm]

Originally Posted by lustylad

Apples and oranges. Airline fares fell after 1980 because airlines were suddenly free to set their own prices based on competitive factors, instead of having the FAA approve them. It had nothing to do with the removal of "taxes & fees".

Yes it had everything to do with taxes and fees, they were paying FAA to get their prices approved.

[lustylad]

Originally Posted by dilbert firestorm

Yes it had everything to do with taxes and fees, they were paying FAA to get their prices approved.

You're wrong. Taxes and fees on airline tickets didn't go away following Alfred Kahn's airline industry deregulation in 1978. Neither did the FAA. Both are still with us to this day. Federal excise/airline taxes continue to fund a major chunk of the FAA's annual operating budget.

Airline prices went down in the late 70s/early 80s as a direct consequence of deregulation allowing dozens of new, low-cost start-ups (remember People Express?) to jump in and provide service. Competition drove down the fares, not tax relief.