TheChairman floated this idea the other day, worthy of its own thread:<\/p>\n
What I\u2019ve toyed with (for at least 10 years) is a combination which I refer to as a National Sales & Transaction Tax, with a much lower rate of 2 or 3 percent\u2026 but charged at -every- exchange of money and goods or services.<\/p>\n
Sales tax = whenever tangible goods exchange hands, be it a TV or a factory.
\nTransaction tax = everything else, excepting double taxation on a transaction.<\/p><\/blockquote>\nThis idea is floated from time to time – usually by the Democrats and\/or the One World government types (which might be a hint of its underlying purpose), but let’s kick the tires.<\/p>\n
I’m trying to come up with a conversation style to get down to the details of how various tax ideas would work in real life, which is often where the ideas fall apart.\u00a0\u00a0\u00a0 People who like the “idea” of the fair tax “like” the idea if they think it takes a 5% tax rate, but like it less when they find out it would need 23%.<\/p>\n
So let’s put down a few markers:<\/p>\n
– who pays the tax – the person sending the money or the person receiving the money?
\n\u00a0– who collects the tax and how do they send it in to the government?
\n\u00a0– what does “double taxation” mean?
\n\u00a0– are there any exceptions?<\/p>\nExample #1:
\nJuan Gomez is doing some profit making activity in the United States, and has $5000 in cash.\u00a0\u00a0 He wants to send the money home to his poor mother in Mexico.<\/p>\nChoice #1:
\nJuan goes to his local Western Union office and arranges to wire the money to a bank in Mexico.\u00a0 Western Union takes Juan’s $5,000 and subtracts the 3% transfer tax ($150) and wires $4,850 to the bank in Mexico.<\/p>\nChoice #2:
\nJuan gives the $5k to his sister, who is returning to Mexico next week.\u00a0\u00a0 Upon arriving home, she gives the entire $5,000 to Mom.<\/p>\nIf you think #1 should be taxed, do you think #2 also has to be taxed, and how would you do it?<\/p>\n","protected":false},"excerpt":{"rendered":"
TheChairman floated this idea the other day, worthy of its own thread: What I\u2019ve toyed with (for at least 10 years) is a combination which I refer to as a National Sales & Transaction Tax, with a much lower rate … Continue reading