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To: Principled

The counter argument is that there will be a huge black market in order to avoid the nrst.

This is simply stating that human behaviors change based on the incentives that are imposed.

So, the answer is, keep the tax below the “acceptable” level for the public, and they will have little incentive to risk breaking the law in order to avoid the tax.

I believe this article shows what the acceptable level would be - 19.5%.


65 posted on 05/21/2008 6:14:09 AM PDT by MrB (You can't reason people out of a position that they didn't use reason to get into in the first place)
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To: MrB

19.5% yes. Interesting, that would be the rev nuetral rate if you include Bush tax cuts. Funny eh?

Also, the nrst takes the EXACT same figure for non-compliance as the income tax does.


67 posted on 05/21/2008 6:21:46 AM PDT by Principled (Vaporize the "Divide and Conquer" taxes - Have everyone pay the same marginal rate!. NRST!)
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