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To: *Taxreform
We absolutely need to abolish the income tax and resort instead to a single-rate, single-stage national retail sales tax instead. Such a system would eliminate the "hidden" taxes in the system and would also eliminate the social engineering that goes on with income taxes.
2 posted on 10/23/2001 3:45:49 PM PDT by kevkrom
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To: kevkrom
Corporate income taxes are NOT a cost that can be passed along to the consumer. This is because the tax obligation can only be determined after sales have been transacted and costs have been deducted from revenues. Corporate Income tax is imposed only on the profit that is made, IF a profit is made.

In a competitive free market, there is no guarantee of either sales or profit. Thus there is no guarantee that there will be a Corporate Income Tax obligation to "pass along" to the consumer.

NRST advocates who insist that corporate income taxes are "embedded" in the sales price of a product are just plain wrong. This assumes that companies can dictate market price in order to cover any costs that they incur when price is actually determined by supply and demand in a competitive market. Any attempt to raise the product price to accomodate the income tax would have to overcome lower priced product from competitors who did not incompetently attempt to incorporate such "costs" in their pricing strategy. The result would be that the company that attempted to "pass along" the tax would actually lose sales volume, possibly even to the point of losing profitablility. Conversely, the lower priced competitors who did not attempt to "pass along" the tax would gain sales volume and enhance their profitability.

The skewed logic utilized by NRST advocates to claim that corporate income tax is paid by the consumer is completely bogus. To accept their convoluted logic is to deny how businesses actually operate in a competitive market. Further evidence of corporations' inability to "pass along" their income tax obligation is published every day in the business section of our nation's newspapers: "ABC Corporation fails to meet 3rd quarter expectations" or "XYZ Inc. incurs 2nd quarter loss". Once again, with future sales and tax obligations (if any) being unknown, it is IMPOSSIBLE for companies to "pass along" their income tax obligation to the consumer.

The Ivory Tower "experts" who concoct this theory are in denial of how business actually operate in a competitive free market. Their fundamental assumption that companies can dictate the market price of their product to accomodate income tax liability is fallacious and reflective of marxist influence.

3 posted on 10/23/2001 3:49:46 PM PDT by Willie Green
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To: kevkrom
Gee, wouldn't a sales tax unfairly burden the lower income people?
4 posted on 10/23/2001 3:51:42 PM PDT by billsux
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To: kevkrom
Wrong, absolutely wrong. The income tax needs to be abolished and replaced with NOTHING. Most federal spending is blatantly unconstitutional. Aside from the military, the courts and the State Department, practically all other functions are way beyond what the Constitution allows and they should be defunded.

To end tyranny you need to cut off its lifeblood - the humongous amounts of money which feed the bureaucracy.

23 posted on 10/24/2001 5:30:34 AM PDT by gore3000
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