The incidence of APT tax falls lightly on the inividual. If revenue neutral, APT shouldn't increase any "hidden" tax burden. P.S. Please watch the name calling. OK?
The incidence of APT tax falls lightly on the inividual.
Your husker screen name is well chosen.
Truth in Taxes, is a bit of what is needed here.
98.5% of the APT is the hidden tax burden passed on to the American consumer and owner of pensions, homes and every other asset under that APT tax.
The tax burden lay in what it does to the economy and how it will be reflected in consumer prices and investment values, not in that misdirecting hoax 0.5% rate that one sees on their sales slip as tax of a single transaction.
Ever hear of compound interest my friend, a transaction tax cascades and multiplies with every transaction upstream from the consumer and of necessity is passed down to him in lower wages, lower investment returns and higher prices. The true cost of your APT tax, is on the order of 30% of GDP (state and federal revenues collected in your tax system)
If revenue neutral, APT shouldn't increase any "hidden" tax burden.
If revenue neutral it is a 30%+ tax on all consumptionpassed on to the American people through its impact on the economy.
from Tax Freedom Day 2004 PDF http://www.taxfoundation.org/sr129.pdf
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Total Effective Tax Rates by Level of Government |
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| Year | Federal | State | Total |
| 1998 | 22.4% | 10.4% | 32.8% |
| 1999 | 22.5% | 10.4% | 32.9% |
| 2000 | 23.1% | 10.4% | 33.5% |
| 2001 | 22.2% | 10.5% | 32.7% |
| 2002 1 | 19.7% | 10.2% | 29.2% |
| 2003 2 | 18.5% | 10.1% | 28.6% |
| 2004 3 | 17.9% | 10.0% | 27.9% |
| Notes: Leap day is omitted to make dates comparable over time. Positive and negative percentages in parentheses after legislation indicate the first-year fiscal impact of the bill,measured as a percentage of NNP. Since depreciation is not available to pay taxes, GDP is an overstatement of spendable income for the purpose of measuring tax burdens. Depreciation is netted out of NNP. 1 Economic Growth and Tax Reform Reconciliation Act of 2001 Sources: Office of Management and Budget; Internal Revenue Service; Congressional Research Service; National Bureau of Economic Research; Treasury Department; and Tax Foundation calculations. |
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"The incidence of APT tax falls lightly on the inividual. If revenue neutral, APT shouldn't increase any "hidden" tax burden."
If you honestly believe that then it is clear that you are ignorant to the business world. All costs of doing business is passed to the consumer, if not the business no longer exists. Taxes are nothing more than a cost of doing business. Tax goes up, price goes up, customers no longer purchase products or services and employees become jobless.
Where does this increase of 70x in the tax base come from?