Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: SolidSupplySide; ancient_geezer

GDP includes busines investment and inventories. Neither are taxed under the NRST.

http://www.colorado.edu/Economics/courses/econ2020/section6/GDP-components.html


19 posted on 12/16/2005 3:09:35 PM PST by groanup (Shred for Ian)
[ Post Reply | Private Reply | To 4 | View Replies ]


To: groanup
GDP includes busines investment and inventories. Neither are taxed under the NRST.

You are misinterpreting your link. GDP only includes economic activity, not assets such as inventories. Your link clearly shows that GDP includes CHANGES IN inventory. If businesses push more inventory out the door than it receives, that is an increase in GDP, and a sales tax will capture it.

A flat income tax does not tax inventories or business investment either. That's why I said a sales tax and a flat income tax are economically equivalent.

20 posted on 12/16/2005 3:14:32 PM PST by SolidSupplySide
[ Post Reply | Private Reply | To 19 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson