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.
To: Always Right
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.Business to business is not taxed. Only retail is taxed.
92 posted on
08/02/2004 8:55:54 AM PDT by
carenot
(Proud member of The Flying Skillet Brigade)
To: Always Right
>>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.
I disagree. Most states already have a sales tax and know how to implement and enforce it. If the tax is low enough, then it would be more effort than it was worth to try and circumvent the tax.
141 posted on
08/02/2004 1:22:21 PM PDT by
BigAzzHam
("Ward, I think there's something wrong with the Beaver." - June Cleaver)
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