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To: Always Right
I agree. But let's look at the sales tax. Under the sales tax the doctor must remit $150,000 for sales tax. Meanwhile, the drug dealer should remit $150,000 for sales tax on all the drugs he sold, but he won't. So in the end, the drug dealer has more money in his pocket to spend under both systems. Taxes are avoided under both system.<

But if both the doctor and drug dealer are going to buy a Mercedes, they will both be paying the same sales tax and the drug dealer WILL be taxed. If you have money, no matter how you got it, you will spend money. If you spend money, you will be taxed.
499 posted on 06/11/2005 10:40:03 AM PDT by SOSCEO
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To: SOSCEO
But if both the doctor and drug dealer are going to buy a Mercedes, they will both be paying the same sales tax and the drug dealer WILL be taxed. If you have money, no matter how you got it, you will spend money. If you spend money, you will be taxed.

This is really silly. The problem is not when they spend it. The doctor has to remit sales tax on his gross receipts, and drug dealer does not. The drug dealer gets to pocket all of his receipts. The drug dealer has 23% more money to spend than the doctor. That is where the drug dealer cheats the sales tax system, which is about identicle to how he cheats the income tax.

503 posted on 06/11/2005 10:59:15 AM PDT by Always Right
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To: SOSCEO
But if both the doctor and drug dealer are going to buy a Mercedes, they will both be paying the same sales tax and the drug dealer WILL be taxed.

Isn't one of the arguments on the NRST side that there is a "hidden income tax" that is included in the price of the Mercedes now? The retail price has to be higher to pay the income tax on all the people who produced the car. So the drug dealer is already paying the same hidden income tax on the Mercedes now as is the doctor. Right?

533 posted on 06/11/2005 2:32:38 PM PDT by FreedomCalls (It's the "Statue of Liberty," not the "Statue of Security.")
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