Posted on 04/30/2004 7:39:02 PM PDT by Central Scrutiniser
No offense intended, but, except for the Military aspects you mentioned, all of the other ones are State / Local responsibilities. The Federal Government should NOT be collecting taxes for such "services"!
Ya know I've been in business now for over 25 years, I have yet run into a situation where I needed a professional buyer.
If I somehow screw up when I buy my product to sell the worst that can happen is I lose money.
If I screw up when I do my taxes I can end up in jail and have all my assets seized and sold without my permission.
You can dance around the subject and try and spin the Tax system and the need to hire a guy to tell you how much you owe the government all you want but you sound silly at best!
The tax system in it's present state is beyond any sense of reason when in comes to the complicated procedure one must go through to see how much one really does owe.
If I ran a grocery store in the same fashion I dare say my customers would never come back.
Heheh I can see it now:
Customer: How much for a loaf of bread?
Me: Well first you must file form 1040A and figure your annual income less deductions and don't forget the depreciation on your house also what is your marital status how many children do you have living at home and do you have additional income from rental property or spousal support...
Customer: will 5 dollars do it?
Me: Of course! But, if you have figured what you owe for the Bread wrong, we can come back in a few years a make you pay penalties and interest, we can also seize all your banking accounts and any property you own.
Customer:I won't stand for it!
Me: Actually you will or go to jail! See, we at the I.R.S. grocery store have unlimited power in going after folks who don't pay the proper amount for a loaf of bread. Also we get to carry guns!
Heheh Yea that is the way to go about it...
If there is a transfer tax on assets then outright direct ownership will be replaced with creative leasng arrangments as well as indirect ownership via corporations, partnerships and trusts in order to circumvent the occurance of taxable transactions.
In addition, swapping and trading will become the main methods of sales. I will purchase my drugs from the pharmisict in exchange for my services. We will charge either $1. instead of the market rate.
You ignored the cost benefit ratio. I guarantee that major food chains have experts that purchase bread. The cost benefit is there. When you buy or sell a home you normally have an expert realtor.
whenever a purchase becomes significant, the use of experts becomes a cost that can save you more money than what you are spending.
If the NRST became a reality a whole industry would be born to assist folks in both planning to avoid transactions (lets assume you get transferred every few years, paying sales tax on each home will get expensive...you will likely find creative purchases being used) or at least plan on reducing the consideration (maybe your employer purchases the homes and provides them rent free instead of paying you a salary).
Don't underestimate the ability of people to create transactions that avoid tax. The folks who think out these things have amazingly creative minds. Just because one changes the playing field doesn't mean the game won't continue.
If investment is not taxable then I will create a personal corporation in which I own my property. When it comes time to sell anything like my home,
LOL, as if wrongful conversions were not illegal today under current sales taxes.
One little thing you overlook, any business that can take advantage of a taxfree purchase, is also licenced & audited to for such shenannigans by the state tax authority.
Second factor there are less than 10% fewer taxable entities under a Retail Sales tax to monitior.
Good luck. Jail terms go with discovery of fraudulent conversions.
Why not just invest in real estate to beginwith, earn enough to pay the tax, and avoid the risk and attendant problems of remaining undetected. Lest risk more gain.
If there is a transfer tax on assets
There isn't a transfer tax on assets, investments are not tax ever. The rule is tax once but only once and only on retail new goods and services for final consumption.
Anything owned as non-business property prior to implementation of the NRST is grandfathered. No NRST on resale, no transfer tax on assets.
You really ought to read the legislation instead of trying to out-guess what it might contain.
read ==> H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.Refer also: http://www.fairtax.org & http://www.salestax.org
In addition, swapping and trading will become the main methods of sales. I will purchase my drugs from the pharmisict in exchange for my services. We will charge either $1. instead of the market rate.
Go ahead, but then that is all to the advantage of having a retail tax on consumption:
"It is a signal advantage of taxes on articles of consumption
that they contain in their own nature a security against excess.They prescribe their own limit, which cannot be exceeded without
defeating the end proposed - that is, an extension of the revenue.
OTOH state sales tax people have lots of experience dealing with that sort of scam.
Of course the fun thing will be to find a licensed pharmacist willing to go along with you considering he, as the seller, is the one putting his business and license at risk in not collecting the tax from you (being paid to do so by the way) and remitting the appropriate taxes to the state tax collectors while maintaining receipts and records of all sales.
No you ignored the simplicity rule!
There is no logical need whatsoever for our tax system to be as complicated as it is.
It is set up to keep lawyers and accounts sucking from the teat and that is all.
We are not talking about rocket science or brain surgery, we are talking about paying a bill. But some see fit to make it complicated so as to profit from it.
The only reason there is a cost benefit ratio in the first place is because congress at the urging of lobbyists set up a jumble of rules and loopholes in the tax code. It is an artificial construct created to benefit those who if they make enough money can skimp around and pay less tax.
Remove the complicated rules and loopholes and everyone could pay less tax and eliminate unneeded services like tax lawyers and such.
I guarantee that major food chains have experts that purchase bread. The cost benefit is there.
And they still will, only they won't be focused on tax ramifications anymore as business to business sales are not taxed under the NRST, nor are there business income or payroll taxes to be concerned with. The experts will be looking for the lowest cost for highest quality of goods instead tax avoidence. No tax, nothing to avoid, one can concentrate on business and productivity instead.
When you buy or sell a home you normally have an expert realtor.
That certainaly won't change, but taxes won't be the reason there. No tax on loan interest under the NRST, (mean lower cost to buy overall). Only concern will be whether to by an older house (no NRST), or a new built house(without NRST collected). Means the expert realtor can concentrate on legal issues and protecting his clients from all the other snafus associated with real estate.
If the NRST became a reality a whole industry would be born to assist folks in both planning to avoid transactions
Yep, they are called financial planners, and will be providing advice on the best investments in which to place your money. Investments after all are not taxable under the NRST. Avoid the NRST by investing simple straight forword, no legal entanglements and profitable as well.
(lets assume you get transferred every few years, paying sales tax on each home will get expensive...
Only if you insist on buying new houses all the time. Secondly, a resale does not require you to collect or remit the NRST. getting transferred need not incur any such sales tax at all.
Even then one must remember that in buying a new house the cost of such actually is lower as the products that go into building the house are not taxed for the contractor, nor is any income or payroll tax levied on the contractor or his suppliers. All told the costs of building go down, consequently the price for a new house can go down nearly as much as the tax imposed.
Buy the way you are aware, are you not, the land the new house would be built on is not subject to the NRST? Residential land itself is grandfathered by the legislation. Thus on a new building will have the NRST collected from the retail consumer.
Don't underestimate the ability of people to create transactions that avoid tax.
Great, plenty of opportunity in small business there, resale of items like antiques, used cars, thrift shops ... all NRST free requiring no collection or remittence of the NRST, and no income or payroll taxes to worry over besides. The best of both worlds.
Just because one changes the playing field doesn't mean the game won't continue.
Won't it be nice to be able to do so without all the hassles and risks involved under the current tax system where just earning income places you at risk of Congress' minions in the IRS.
NRST provides unbounded opportunity for the legal creation of income & wealth without taxing it away. Go for it.
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