<[EMAIL PROTECTED]> wrote: > But, where will the money come from? Will people buy less each week? > Will randomly select items to strike from their purchases? Or will > they have difficulty at the end of the month.
Not sure where the 2 billion figure comes from. It is my understanding that they are only expecting $130 million per year to finance $5 billion dollars in bonds. Clearly if the government is making some of the choices for us we would still be buying the same amount (or more since they are leveraging that money using debt). We are simply spending more on what the government decides to do with our money than what we might choose. This leaves us with fewer resources in which to make our opportunity cost decisions. There is no way to know whether some people will have trouble changing their spending habits and therefore borrow (use the credit card). In the long run, people will either buy less (12 inch pizza rather than 16 inch) or substitute cheaper items (Safeway brand versus name brand). An additional comment (outside of the focus of your question) is that there will be some businesses particularly impacted by this tax change. Businesses located on the southern border of the regional sales tax area may lose customers to businesses across the county borders. Over time, (as businesses close to the border dry up) this disparity may grow resulting in less sales tax revenue than forecast. Fred Childress ----- Original Message ----- From: <[EMAIL PROTECTED]> To: <[EMAIL PROTECTED]> Sent: Monday, October 21, 2002 9:44 PM Subject: Re: VA sales tax question > I didn't ask my question very clearly. Sure, a sales tax shifts > purchases. They want to raise 2 billion in Northern Virginia. That > has to come from somewhere. And there will be leakage -- some people > will be more inclined to buy off the net or in DE which has no sales > tax. > > But, where will the money come from? Will people buy less each week? > Will randomly select items to strike from their purchases? Or will > they have difficulty at the end of the month. > > Again, I'm sorry that my question wasn't clear. > > mitch > > > > ----- Original Message ----- > From: Fred Foldvary <[EMAIL PROTECTED]> > Date: Monday, October 21, 2002 9:34 pm > Subject: Re: VA sales tax question > > > --- [EMAIL PROTECTED] wrote: > > > > > If you ask the average person, they argue that it won't change > > what > > > they buy at all. > > > > A sales tax does shift purchases; some purchases will shift to out- > > of-state > > mail-order or nontaxed services. (Virginia does have a use tax, > > but few > > pay it, as I recall.) > > > > Fred Foldvary > > > > ===== > > [EMAIL PROTECTED] > > > > > > >
