[Iwo Jima]

Where does your exponential growth of tax avoidance come from?

The 30% tax of transactions for "new" or "untaxed" items (however that is defined). That's a tremendous incentive to try to structure transactions so that they seem to be outside the tax or to just flat out buy and sell on the black market without any regard to the tax. Those who try to play by the rules are at a serious disadvantage when the rules make no since, such as when you have made a used item more valuable than a new one.

[Always Right]

The 30% tax of transactions for "new" or "untaxed" items (however that is defined). That's a tremendous incentive to try to structure transactions so that they seem to be outside the tax or to just flat out buy and sell on the black market without any regard to the tax.

All that has to happen is everyone start a business and start to claim all their expenses as business related. In a free country where everyone is free to start any business they want, why wouldn't they. No one says a business has to be profitable. I could drive a Mack Truck through that loophole, or atleast an SUV for my wife.

[CSM]

OK then. Where does the black market seller get the products to sell? (starting the circle all over again)

Keep in mind that we already established:
1) The manufactures selling the product to liscensed businesses would be within the law, therfore outside of the black market.
2) The liscensed business buying the product would not risk that liscence to participate fully in the black market.
3) The rate of avoidence by each of these party would be approximately the same rate that we see today.

[CSM]

"The 30% tax of transactions for "new" or "untaxed" items (however that is defined). That's a tremendous incentive to try to structure transactions so that they seem to be outside the tax or to just flat out buy and sell on the black market without any regard to the tax. Those who try to play by the rules are at a serious disadvantage when the rules make no since, such as when you have made a used item more valuable than a new one."

---

OK then. Where does the black market seller get the products to sell? (starting the circle all over again)

Keep in mind that we already established:
1) The manufactures selling the product to liscensed businesses would be within the law, therfore outside of the black market.
2) The liscensed business buying the product would not risk that liscence to participate fully in the black market.
3) The rate of avoidence by each of these party would be approximately the same rate that we see today.

Just in case you missed this one in all the replys you have received.