Now you are being argumentative. I am NOT saying that the income tax is NOT being evaded. I am just saying that a 23% NRST would ALSO be evaded.
As a retailer, I add up total retail sales receipts(gross), and multiply by a fixed rate. For the NRST with a state sales tax, that would be (.23 + statetax factor) * total receipts. Send the calculated amount to the state tax authority.
Exactly! So what is the debate about?? The original post was about $77 in groceries. Now a 23% federal NRST on $77 is $17.71, totaling $94.71, not the $100 total that you originally claimed. State sales taxes would be in addition to the $94.71, and would be calculated based on the $77 purchase. For example, a 10% state sales tax on $77 would be $7.70, for a combined total of $102.41 ($77 + $17.71 + $7.70). Please re-read what you have written.
You have better data? (about compliance costs)
Your previous reply gave multiple answers. I myself don't know what the number is. This number is subject to wide estimates, and I believe that NO ONE knows the amount. As I stated in a reply to your other post, the size of the underground economy, by definition, is hard to calculate. But compliance costs of $1.35 trillion is WAY too high.
Exactly! So what is the debate about?? The original post was about $77 in groceries. Now a 23% federal NRST on $77 is $17.71, totaling $94.71, not the $100 total that you originally claimed.
The Federal NRST on $77 of shelf price goods = 23 dollars.
The NRST tax rate is the rate used by the seller to calculatw taxes to be remitted to the Federal Government out of gross(tax included) sales reciepts.
The NRST law is written from the perspective of the retail seller required to remit taxes to the government.
23% of gross(tax included) sales receipts is a tax inclusive measure comparable to income tax measurement which is about 22.4% of gross(tax included) family income.
Apples are compared with apples when comparing the rates of the income/payroll tax system, with the rates of the NRST which replaces it.
The amounts remitted to government in both cases are the comparable.
The seller collects a gross payment from the consumer(state + federal + shelfprice), the seller then remits (23% + statetax%) of gross payment to the state tax authority as called for in the legislation.
Got it?