Quote:
Originally posted by Giorgio_Xo
A VAT is a very effective form of taxation since it gathers revenue for the government at the comsumer level. My main concern would be the underground economy it would create. How would the government enforce it?
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How is sales tax collected today?
Quote:
Originally posted by Giorgio_Xo
How would the government protect those below the poverty line? A flat tax on comsumption would be unfair to those that earn less.
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This was answered in the initial post. Essentials, up to a certain amount, are rebated at the beginning of the month.
Quote:
Originally posted by Giorgio_Xo
The most important issue would be to repeal the 16th Amendment before instituting a sales tax. If it isn't repealed first, the government would likely collect both an income tax and a sales tax!
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I don't know if that's part of this bill or not, but it's part of the fair tax plan.
www.fairtax.org
Quote:
Originally posted by Giorgio_Xo
What about local governments right to impose a sales tax? A 24% national sales tax plus the local Bay Area sales tax of 8.25% would lead to a total of 32.5% tax on comsumption plus California residents would still pay 5-9% state income tax! Sales tax isn't a deductable expense.
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That much tax is already imbedded into a product's price. You will essentially be paying the same amount for products and services with a larger pay check, since you won't be paying income tax or pay roll tax.
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