To: ancient_geezer
The way this type system is traditionally "gamed" is by trying to disguise ultimate user purchasers of goods as business users. There is no easy way to avoid this problem, but choosing this is probably better than having a VAT equivalent at each level of production with a credit for prior taxes paid. In that case you have less tax avoidance, but it discriminates against non-integrated businesses.
103 posted on
02/11/2004 7:25:20 PM PST by
labard1
To: labard1
In any tax system there is always a way to "game" the system. Some are more costly than others is all.
However, the driving force behind HR25, is not what it does for government, but what it does for the citizen.
The current income/payroll tax system by most of the estimates I have seen runs somewhere around 15-25% non-compliance depending upon whose numbers you want to believe.
If the NRST does no better than the worst of those numbers, I have no qualms about it. I am more interested in placing the first option and claim on how money is to be used in the hands of the citizen, as opposed to that of government.
The citizen gains in liberty, privacy and knowledge of how his finances are allocated between investment consumption and government. That empowers the citizen to perform his obligation of "Eternal Vigilance" that is the necessary adjunct to a functioning free society.
The financial aspects, especially as it regards any benefit to government, comes in a far second place to empowerment of the citizen.
104 posted on
02/11/2004 8:01:55 PM PST by
ancient_geezer
(Equality, the French disease: Everyone is equal beneath a guillotine.)
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