"gfn" wrote in message
...
On May 27, 10:09 am, "SaPeIsMa" wrote:
"gfn" wrote in message

...
On May 26, 8:03 pm, "Scout"







wrote:
"gfn" wrote in message

...

On May 26, 1:05 pm, RD Sandman wrote:
gfn wrote
:

On May 25, 5:42 pm, RD Sandman
wrote:
gfn wrote
innews:7c91830c-c968-4f08-9c9e-77bc0350d428@
y19g2000yqk.googlegroups.com:

Sure I do. The "flat tax" has the government deriving its
revenue from the income tax.

Yep....at a flat rate for everybody.

As does the FairTax. Best part is the consumer pays it only when
the
y
buy something. They decide when to pay it, not when the
government
decides you owe it on payday.

It looks like they are trying to mix sales tax with the old luxury
tax.

The FairTax is effectively a replacement of the compliance costs
that
are already built in to every product and service you buy.

Not quite since those compliance costs are not the same revenue
source
as
the income tax. For your Fair Tax to work, that revenue source from
income needs to be added.....so it isn't simply the 'before' costs
added
to the price of purchase.

No it doesn’t need to be added. It’s already part of what you are
paying anyway. Here’s a very simplified example:

Product costs $100, broken down as follows:

Under current system
- wholesale = $50
- compliance costs = $23
- sales and other taxes = $27
- Grand total = $100

Under the FairTax
- wholesale = $50
- compliance costs = - $23
- FairTax = $23
- sales and other taxes = $27
- Grand total = $100

Sorry, but how can you totally eliminate compliance costs, since there
would
still be costs to complying with the FairTax as well as the sales and
other
taxes.

As such simply saying it's not going to cost anything to comply with the
tax
laws is an utterly false assumption.

Indeed since NOTHING else has changed the compliance costs would, at
minimum, stay the same, and given that the need to comply with the
FairTax
would require some expense, the compliance cost would likely increase.

So in reality, what would happen would be more like:

Under the FairTax
- wholesale = $50
- compliance costs = $26
- FairTax = $23
- sales and other taxes = $27
- Grand total = $126

#
# Let me ask you a real simple question. What cost do you incur to pay
# a sales tax at the point of purchase?

The buyer ?
The buyer is paying for the cost which is built into the sale price
#
# There's no compliance cost to him with paying the sales tax. They
# just pay it. Unlike the fed income tax compliance means CPAs,
# TurboTax, manuals, etc.

Since the seller has to pass on his costs to the buyer through his pricing,
it's always the buyer/end user who pays for all the costs...


The seller ?
The seller has the cost of managing and reporting the taxes that were
captured at the point of sale.


#
# Oh, you mean like they already do with state sales taxes? By the way,
# merchants and sellers are reimbursed for those costs. But, you knew
# that already, didn't you?

There is still the cost of pushing all that paper around

It's a REAL cost. And it's passed on to the customer through the pricing of
the products sold.


The government ?
The government has the cost of processing and verifying the reports from
the sellers. As well as running investigations/prosecutions where it's
suspected that the sellers are not reporting/paying all the captured
taxes.

Which they already do.
Agreed.
The only real benefit of a VAT is that it shifts the taxation process to a
different venue.
Unfortunately governments have a tendency not to give up existing revenue
streams even when an "alternate" one is put in place.