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To: sitetest

Oh, for crying out loud- compliance with sales tax is microscopic compared to income tax compliance. I know- I have to do both.

Get educated on the subject before you publish ignorance.


270 posted on 08/25/2005 2:00:05 PM PDT by ovrtaxt (Fairtax.org)
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To: ovrtaxt

Dear ovrtaxt,

Compliance costs with sales taxes are relatively modest right now because enforcement is scaled to the amount of attempted evasion. Increase typical sales taxes from 5% - 8% to 30% - 38% (remember, the state will be collecting their own taxes along with the federal tax, so in some states, on many items, the total sales tax will be 38%), and evasion attempts will skyrocket. Why? Because that will be where the big bucks are.

And enforcement will increase, fueled by two factors: even if attempts at evasion stay the same, there will be more money to collect, and thus, it will be worthwhile to enhance enforcement efforts - the point of diminishing returns will be substantially raised; and of course, more folks will try to evade sales taxes, thus creating an even bigger pile of money to be gained by enhanced enforcement.

As enforcement efforts for sales taxes increase, so will compliance costs.

In any event, my compliance costs for income taxes are almost entirely subsumed into my accounting requirements. So, my compliance costs are a fraction of a percent of my overall revenues.


sitetest


277 posted on 08/25/2005 2:12:10 PM PDT by sitetest (If Roe is not overturned, no unborn child will ever be protected in law.)
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To: ovrtaxt
compliance with sales tax is microscopic compared to income tax compliance

The NRST bill will also provide a credit to the retail business for compliance costs equal to a percentage of the taxes collected. Try getting that from the IRS... ;)

369 posted on 08/26/2005 4:37:51 AM PDT by kevkrom (WARNING: If you're not sure whether or not it's sarcasm, it probably is.)
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