Topic: US: Virtual economies attract real-world tax attention: WTF?

[Capt_Bearslayer_XC]

Flat tax...

We started with a FLAT INCOME TAX!!!!

Look at it now!!!

FAIR TAX is the way to go!!!

[Soliton]

Ok, let's put this insane notion of a sales tax funding everything to rest. Read the above linked article The 23 Percent Solution. It states that the real number for a sales tax funding everything is closer to 50%. If you don't believe that, then do a first-order calculation and see for yourself. Look up what the average sales tax is and what the per capita payout is (average sales tax = 5.93%, per capita $836). Then find the per capita revenue for the Federal Government ($6357 in 2004). So you want the per capita revenue to go from $836 to $6357? That is 7.6 times as much, so you'd probably need roughly a sales tax around 45%. That jibes a hell of a lot more with the 50% number than the 23% number offered by the sales tax proponents.

Under this insane national sales tax plan, understand that corporations would pay zero tax. That means every big ticket item bought by a rich person would not generate one penny in sales tax revenue. Why? Because every big ticket item would be purchased by a corporation, not an individual.

[GE-Raven]

Ok, let's put this insane notion of a sales tax funding everything to rest. Read the above linked article The 23 Percent Solution. It states that the real number for a sales tax funding everything is closer to 50%. If you don't believe that, then do a first-order calculation and see for yourself. Look up what the average sales tax is and what the per capita payout is (average sales tax = 5.93%, per capita $836). Then find the per capita revenue for the Federal Government ($6357 in 2004). So you want the per capita revenue to go from $836 to $6357? That is 7.6 times as much, so you'd probably need roughly a sales tax around 45%. That jibes a hell of a lot more with the 50% number than the 23% number offered by the sales tax proponents.

Under this insane national sales tax plan, understand that corporations would pay zero tax. That means every big ticket item bought by a rich person would not generate one penny in sales tax revenue. Why? Because every big ticket item would be purchased by a corporation, not an individual.

You seem to make the silly assumption that anyone would be exempt from such a sales tax.  You are incorrect...  Unlike current sales tax this sales tax would be on ALL goods EVERY time they are sold.

You buy a screw you pay the tax, you sell the screw THEY pay the tax, the screw is put into a clock and the clock is sold, the tax is payed again.

10% would be MORE than enough.

The extra side effect of all of this it that it would facilitate more direct sales to the customer, meaning less middlemen, and less markup. 

GE-Raven

[Dracho]

Flat tax...

We started with a FLAT INCOME TAX!!!!

Look at it now!!!

FAIR TAX is the way to go!!!

Actually, we started with the Federal Government only authorized to levy tariffs.

[Soliton]

You seem to make the silly assumption that anyone would be exempt from such a sales tax.  You are incorrect...  Unlike current sales tax this sales tax would be on ALL goods EVERY time they are sold.

You buy a screw you pay the tax, you sell the screw THEY pay the tax, the screw is put into a clock and the clock is sold, the tax is payed again.

10% would be MORE than enough.

The extra side effect of all of this it that it would facilitate more direct sales to the customer, meaning less middlemen, and less markup. 

People already get around paying sales tax on big ticket items. They buy them through corporations. So you're saying when the sales tax goes up and the ability to get around it gets easier there will be less tax dodging than there is now? You apparently don't even read what these people propose as they propose that corporations wouldn't pay any tax for their purchases.

Mihos paid Mass. no tax on his yacht

Independent gubernatorial candidate Christy Mihos, a multimillionaire businessman, avoided more than $23,000 in Massachusetts sales tax and $1,320 in local excise taxes on his luxury motor yacht by forming a corporation in Rhode Island to purchase and own the boat, a Globe review of the transaction shows.

There is already sales tax of 6-8% yet it doesn't pay for anywhere near the total needs of the government. You say that a 10% would pay for everything. Are you basing that statement on something in reality?

Are you suggesting that every single part of every single manufactured good would be taxed seperately? What a nightmare. Who is going to track all that, and who is going to ensure compliance? The bookkeeping alone would cause a huge increase in cost of consumer products.

People currently engage in fraud if there is as little as a few percentage points difference in tax on such items as cigarettes. When the difference becomes huge and on everything, the fraud and black markets will explode. It will be like prohibition but not limited to just alcohol with regard to smuggling.

[Capt_Bearslayer_XC]

Flat tax...

We started with a FLAT INCOME TAX!!!!

Look at it now!!!

FAIR TAX is the way to go!!!

Actually, we started with the Federal Government only authorized to levy tariffs.

I know that wise guy....

And during WWII was when they first started implementing the taking of taxes before you even see your paycheck....

[Capt_Bearslayer_XC]

Ok, let's put this insane notion of a sales tax funding everything to rest. Read the above linked article The 23 Percent Solution. It states that the real number for a sales tax funding everything is closer to 50%. If you don't believe that, then do a first-order calculation and see for yourself. Look up what the average sales tax is and what the per capita payout is (average sales tax = 5.93%, per capita $836). Then find the per capita revenue for the Federal Government ($6357 in 2004). So you want the per capita revenue to go from $836 to $6357? That is 7.6 times as much, so you'd probably need roughly a sales tax around 45%. That jibes a hell of a lot more with the 50% number than the 23% number offered by the sales tax proponents.

Under this insane national sales tax plan, understand that corporations would pay zero tax. That means every big ticket item bought by a rich person would not generate one penny in sales tax revenue. Why? Because every big ticket item would be purchased by a corporation, not an individual.

And another person who has proven they NOTHING about the sales tax but the rate....

Just a few things b/c I don't have time for the full dissertation...

How do you think Corporations pay taxes?  If you say anything other than by raising the prices you pay for their goods, you are wrong.

If you go with a NTS, you drop all the inherent federal taxes from the price of the goods you buy.  That amount is between 20-50%.

It may not happen at first, but it will happen as market pressure drops the prices. BTW, over 300 of the Forbes 500 companies have made pledges to drop prices as soon as the FairTax plan goes into effect.  So, prices drop 20-50% and you pay an extra 23%... on most things, you make out on the deal.

It will further reduce prices by eliminating the need for an elaborate accounting and lawyer division just to get taxes done each year.   (GE's corporate tax filing was TWENTY FIVE THOUSAND PAGES LONG for 2005, how much money was paid for accountants, lawyers, and tax compliance?)

You no longer need to tax preparer to do your taxes.

There is also a kick back system based on the poverty level that will give every head of household back the amount of sales tax they would pay per month on necessitates.

Now go read up on the plan before you try to rip it a new one....