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View Diary: Stephen Colbert destroys Romney's tax plan with one simple question (235 comments)

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  •  Let's tweak the example a bit: (2+ / 0-)
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    greengemini, happymisanthropy

    say I buy 10 items in a year at $10 a piece at a store that has an annual membership fee of $50.  My net cost is $150.  Let's say then that the fee is raised to $75 and the price drops to $7.50 per item.  I'm still paying the same for my items, but now the incremental cost of each item has dropped.

    In a sense, then, what's happened is that we've encouraged buying more; another way of looking at is a transfer from people buying less to people buying more.

    Or, in the tax context, a transfer from people that earn less to those that earn more.

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