Just a question here, not an argument:
How can you be sure sales tax won’t become VAT?
If a parts manufacturer buys raw material from a supplier, doesn’t sales tax apply?
When that parts manufacturer sells the parts to Dell Computer (for example), isn’t there a sales tax on that sale?
When the computer is sold retail, another sales tax, no?
So how is all that not VAT?
Please explain.
We would need it to be clarified and I believe it will be. I do not believe he is looking for things to be multiple taxed.
If a parts manufacturer buys raw material from a supplier, doesn’t sales tax apply?
When that parts manufacturer sells the parts to Dell Computer (for example), isn’t there a sales tax on that sale?
When the computer is sold retail, another sales tax, no?
The question you ask was solved a century ago in the state sales tax systems. It’s not a problem to worry about.
(1) I make swingsets to sell to customers.
I buy wood from Home Depot. I show them my tax-id number and tell them this is a wholesale purchase. They do NOT charge sales tax.
(2) I make a swingset to put in my backyard.
I buy wood from Home Depot. I tell them it is for my personal use; it is not a wholesale purchase. They charge me sales tax.
Only retail purchases (purchases by the person that is actually going to use the product) are taxed.
Wholesale purchases (purchases that will be sold to someone else, or incorporated into a product that will be sold) are NOT taxed.
That worries me! Although Cain wouldn't do it a Democrat would jump on it.