Read Jane Gravelle's "Behavioral Responses to a Consumption Tax"
The reality is that with the implementation of a retail sales tax on goods and services coupled with the repeal of the current taxes on business, product prices receive do decline substantially under pressure of competition not only from peer businesses but competition for dollars diverted by families to savings and investement. That is what gives rise to the 4.3% decline in consumption in the first year of an NRST resulting falling prices received by business without loss of profitability and is totally consistent with Gravelle's paper.
I have no gripes whatever with her work on the subject and neither do Jorgenson or Wilcoxen.
The issues that are raised in United States Tax Reform in the 21st Century by Zodrow & Mieszkowski in regards to the VATs supposed superiority as opposed to an RST, have to do with governments ability to enforce a tax upon the citizenry.
[b]As as I stated before and I'll state it again, I am not interested in the government's desire to extract more for the citizen.[/b] Your enforcibility issue and those who consider the VAT to be superior on that basis do not even get out of gate much less place in the horserace.
The issue and superiority of the NRST is not one that allows governent be able to plunder the citizen for more, the issue of NRST superiority is one of personal liberty and empowerment that the NRST provides to citizen not the government and of superior economic performance.
Sorry your stated primary criteria of enforcibility is a position of supporting stronger central government, and is in total opposition to my stated primary criteria of personal liberty and economic growth that I conclude the NRST's inherent superiority exists over all other forms of consumption taxation.
That is SO good it bears repeating!!!
The issue and superiority of the NRST is not one that allows governent be able to plunder the citizen for more, the issue of NRST superiority is one of personal liberty and empowerment that the NRST provides to citizen not the government and of superior economic performance.So you want a tax that's easy to evade. Nice. Then the marginal rate has to be higher. Honest people have to pay more. And the economy suffers overall.
The issues that are raised in United States Tax Reform in the 21st Century by Zodrow & Mieszkowski in regards to the VATs supposed superiority as opposed to an RST, have to do with governments ability to enforce a tax upon the citizenry.There are quite a few other issues addressed in the book.
That is what gives rise to the 4.3% decline in consumption in the first year of an NRST resulting falling prices received by business without loss of profitability and is totally consistent with Gravelle's paper.Maybe you should tell her that. Have you even read it?