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To: Bikers4Bush

>>No national sales tax, no VAT tax. Flat tax and be done with it.


A flat tax may only be marginally better than what we have now. The problems with the IRS is defining what is INCOME and what are EXPENSES. Example: If you have a commercial property and you pay to have the parking lot sealed, is that an improvement or an expense? Was it for business or personal use? With a sales tax, it doesn't matter. With an income tax, you are still at the mercy of the IRS.


87 posted on 08/02/2004 8:18:05 AM PDT by BigAzzHam ("Ward, I think there's something wrong with the Beaver." - June Cleaver)
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To: BigAzzHam
A flat tax may only be marginally better than what we have now. The problems with the IRS is defining what is INCOME and what are EXPENSES. Example: If you have a commercial property and you pay to have the parking lot sealed, is that an improvement or an expense? Was it for business or personal use? With a sales tax, it doesn't matter.

Oh yes it does. The sales tax has the exact same problem. Everyone will try to make all expenses business expenses and not be subject to sales tax. This 'loophole' will have to be closely scruntinized by the sales tax police. Just like now, every transaction will have to be looked at. Whether you look at it from the income perspective or the expense or sales perspective, it really doesn't make a huge difference.

90 posted on 08/02/2004 8:41:42 AM PDT by Always Right
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