Posted on 04/22/2003 10:40:02 AM PDT by sheltonmac
That is a completely different argument. In fact it isn't an argument, it is an opinion.
The fact is that a sales tax can't tax transactions in the underground economy any better than an income tax.
"Transactions in the underground economy such as drug deals don't get taxed by either a sales tax or an income tax."
From what I understand, the huge taxes placed on tobacco products actually helped create a burgeoning black market for cigarettes.
So, you admit that nothing would actually change under a NRST?
Seems like SolidSupplySide is making some progress after all.
False statement created by the sales tax lobby.
Real prices will remain essentially unchanged. We can't (sales) tax ourselves into prosperity.
Nope.
Not in the sense that a VAT is typically multi-stage, i.e., goods are taxed at each stage of production or where they otherwise change hands. A retail sales tax is a single-stage tax imposed only on a final retail sale.
Thanks. I agree with you and have argued the same point in the past.
As a manufacturer, I know that my costs will change less than 2% from the NRST, so no change will occur in my prices and yet, at the same time, the cost to my customers will go up 23% due to the NRST. Guess what happens to my business then and how many people I will have to lay off.
The following would change under the NRST, and not by any so-called "flat tax":
There's probably more, but this will do for a start.
Oh, really?
How much do you pay in income taxes and FICA taxes for you and your employees?
How much do you pay in taxes on profits turned by your business?
Have you looked into how much the price of your raw materials are inflated by taxes paid by your suppliers? Taxes on services you use (power, phones, etc.)?
How much do you spend each year complying with taxation, including legally avoiding paying taxes (e.g., tax shelters) in both actual costs and opportunity costs?
No way this adds up to only "2%". That is naive to a fault.
When the drug seller pays for other goods, such as cars, clothes, et cetera, the proceeds of his transaction get taxed at that point.
is NOT an argument FOR the NRST. That's all.
You do concede, though, that the points I brought up in my #50 are correct?
Nothing. It comes out of the employee's conpensation.
How much do you pay in taxes on profits turned by your business?
Nothing, it's all dividends and perks.
Have you looked into how much the price of your raw materials are inflated by taxes paid by your suppliers? Taxes on services you use (power, phones, etc.)?
Yes, changes will be insignificant.
How much do you spend each year complying with taxation, including legally avoiding paying taxes (e.g., tax shelters) in both actual costs and opportunity costs?
About $100 a year for "Turbotax for Business" and (surprise!) opportunity costs aren't real money.
No way this adds up to only "2%". That is naive to a fault.
Nope. Try again.
Well, it's obvious the present, global money monger owned, federal farce has no problem with being oppressive.
A National Retail Sales Tax would tax all products, internally manufactured or imported.
It's also worth noting that the tax was imposed on whiskey, and whiskey alone, instead of any number of other products that could have been taxed. The reason for this was simple -- those esteemed folks known as the Founding Fathers had no intention of taxing commodities like tobacco and cotton because they themselves would have been adversely affected by it.
I will concede that there will be massive changes in the economy from the NRST. Assuming you can get enough elected weasels to agree on one single version that deals with the income tax, social security, medicare, all excise taxes, user fees, and everything else the weasels have embedded in our economy. And, that's assuming that you could ever get enough elected weasels to completely abandon their source of power, money, and influence. And, finally, anybody who trusts a politician not to monkey with it after passage is just naive.
For the record, if it ever passes, I predict it will just make the underground economy even bigger.
[I apologize to any weasels for comparing you to politicians]
But if the author is talking about a VAT, that would be more difficult.
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