"NO....NOT a VAT...its added to EVERY transaction beween producer and consumer....and it REALLY really jacks up the price and adds to inflation (like in EU)."
EXACTLY!
"A FLAT TAX 13% and NO deductions like in Russia is MUCH much better.....(that would tik off the lefties....ha ha)"
I'm WITH YOU! A flat tax is best and NO deductions.
Repeal the 16th amendment and institute a NSRT along with state tax reform.
NO....NOT a VAT...its added to EVERY transaction beween producer and consumer....and it REALLY really jacks up the price and adds to inflation (like in EU).
A FLAT TAX 13% and NO deductions like in Russia is MUCH much better.....(that would tik off the lefties....ha ha)
Be careful what you ask for you might get it.
RUSSIA: PART TWO OF THE RUSSIAN FEDERATION TAX CODE
http://waysandmeans.house.gov/fullcomm/106cong/4-11-00/4-11kotl.htm
"Robert Hall, one of the originators of the proposal(Flat Tax), who describes his Flat Tax as, effectively, a Value Added Tax. A value added tax taxes output less investment (because firms get to deduct their investment.)"
"The Flat Tax differs from a VAT in only two respects. First, it asks workers, rather than firm managers, to mail in the check for the tax payment on that portion of output paid to them as wages. Second, it provides a subsidy to workers with low wages."
The Flat Tax; Chapter 3, by Robert Hall and Alvin Rabushka
| Here is the logic of our system, stripped to basics: We want to tax consumption. The public does one of two things with its income—spends it or invests it. We can measure consumption as income minus investment. A really simple tax would just have each firm pay tax on the total amount of income generated by the firm less that firm’s investment in plant and equipment. The value-added tax works just that way. But a value-added tax is unfair because it is not progressive. That’s why we break the tax in two. The firm pays tax on all the income generated at the firm except the income paid to its workers. The workers pay tax on what they earn, and the tax they pay is progressive. To measure the total amount of income generated at a business, the best approach is to take the total receipts of the firm over the year and subtract the payments the firm has made to its workers and suppliers. This approach guarantees a comprehensive tax base. The successful value-added taxes in Europe work this way. The base for the business tax is the following: Total revenue from sales of goods and services less purchases of inputs from other firms less wages, salaries, and pensions paid to workers less purchases of plant and equipment The other piece is the wage tax. Each family pays 19 percent of its wage, salary, and pension income over a family allowance (the allowance makes the system progressive). The base for the compensation tax is total wages, salaries, and retirement benefits less the total amount of family allowances. |