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To: George Frm Br00klyn Park
"It also makes the tax burden on a $30,000 dollar car the same for me as Perot and Gates, making just the taxes alone prohibitive from me acquiring the car."

This is the same argument as from the IRS propaganda-for-kids page, and it's flawed.

Your average billionaire probably won't be buying that $30,000 car -- he'll be buying a $150,000 car or a $50,000,000 jet. How much tax did you pay on your ~$80,000 home? How much did BillG pay on his $65,000,000+ home? His property taxes alone for the first year were close to $600,000.

On a more down-to-earth level, I believe the IRS used the example both rich and poor taxed the same on a cheap tire. Poor average guy, he paid a bigger percentage of his income on taxes when buying that tire. However the truth is that the average guy will buy a $50 tire for his Neon, but the Porsche driver will be paying over $300 for a Pirelli PZero that will last for half as many miles.

The sales tax may or may not be great for the economy depending on what economic school you're in: it'll encourage saving and discourage spending.

85 posted on 12/06/2001 1:00:24 AM PST by Quila
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To: Quila
"The sales tax may or may not be great for the economy depending on what economic school you're in: it'll encourage saving and discourage spending."

Q, Which is exactly why it is a bad system. Tax systems should NOT be used to further some socialist agenda over another. Peace and love, George.

90 posted on 12/06/2001 5:20:28 AM PST by George Frm Br00klyn Park
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