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To: Always Right

You are a piece of work. I understand it quite well. You are the one who does not see the lunacy is extrapolating the effects of a 5-10% sales tax to a 30% sales tax.

LOL, as I said you don't have the vaguest notion of how system parameters are derived. You would find from reading Jorgenson's base work in the that has model parameters are rooted in data on all kinds of tax systems from US and around the world and how changes in rates, removal of tax systems as well as their imposition have on economies, not just low rate state sales taxes. There have been many instance in history of retail tax rates on the order of those proposed by the NRST, as well as experience with equivalent VATs, from which much can be learned, of even higher rates.

The few studies which have been done (mostly in Europe) show a dramatic impact on consumer behavior once a sales tax of over 10% is added.

LOL, yep there are lots of studies on business turnover taxes essentially VATs without the credit side of the credit voucher system., and how they sap an economy through cascading. Those business turnover tax are the kind of "sales tax" that were specifically replaced by the EU VATby the way. Europe's holdover from WWII, and France's basis for instituting the first national VAT structure. The VAT credit was added into the turnover tax system to help prevent their business to buisness turnover taxes from cascading tax ontop of tax.

Unfortunately for the EU, they have found that VATs just encourage politicians to create more regualatory complexity and government redtape with the consequence their tax systems are totally bogged down with underground black markets because small businesses can't handle the redtape and stay afloat and single proprietors just turn to cash under the table and door to door business based on home manufacture and service instead with underground cash/barter economies hit levels greater than 35% in several areas of the EU.

So plenty to learn from the EU and how not to do things, as well as the consequence of changes in tax systems of all kinds and rates, their effects on economies and what incites evasion and what doesn't. Interestingly redtape and complexity appear to be the greater culprit in evasion, not rate. But then you would have known that had you actually take time to learn about the situation. And that high marginal rates such as the 40% plus marginal rates of the income/payroll tax system on businesses that incite the self-employed and small business into a cash underground on the order of 10-20% of GDP in this country.

509 posted on 02/16/2005 8:43:29 AM PST by ancient_geezer (Don't reform it, Replace it!!)
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To: ancient_geezer
There have been many instance in history of retail tax rates on the order of those proposed by the NRST, as well as experience with equivalent VATs

ROTFL....You have told me 1000 times over that a VAT is completely different from your sales tax. Now you tell me they are equivalent. I can't take you BS no more.

512 posted on 02/16/2005 8:45:33 AM PST by Always Right
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To: ancient_geezer
So plenty to learn from the EU and how not to do things, as well as the consequence of changes in tax systems of all kinds and rates, their effects on economies and what incites evasion and what doesn't. Interestingly redtape and complexity appear to be the greater culprit in evasion, not rate.

Yeah, that's the ticket. People do illegal things to avoid the paper work, not for the tons of money they save.....

514 posted on 02/16/2005 8:58:49 AM PST by Always Right
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