I have not taken part in the "debate" in that it hasn't been very informative.
I have heard the same
old arguments/accusations from all. But I DO believe that there is a need for
exchange and debate.
I only wish it was a bit more civil and not a boxing contest to see who can get
in the quickest
blows. If you guys have a hard time understanding the civil war in Yugoslavia,
neighbor against
neighbor, just reread your own exchange.
Besides, I lurk here to read about Miata power issues, not uninformative
debates and verbal boxing
matches.
That being said, I found it interesting that the concept of the "fair tax" was
brought up. And Larry
is, of course, right in saying that we should look at it before simply throwing
it out based upon
its name or which politicians have brought it up.
As I understand it the "Fair tax" is a tax paid on consumption of services,
goods, whatever paid by
the end buyer. Much like a sales tax or the European VAT or the Swedish MOMS.
Yes, there are
differences, but for all practical purposes it is a tax not on income but taken
out when you USE the
money for your own pleasure or need.
While the American designers of this proposal probably mean well, I have lived
under this system
and, quite frankly, it doesn't work and is far from being fair. In Sweden (and
Denmark) this tax is
25%. Something that would have cost $100 actually costs me $125. It is a 25%
added on tax - or
counted backwards, 20% of all money I spend is tax. Well, sounds fair but...
What is created is an enormous black market. Someone comes to me and wants to
buy a computer for
let us say $1000. Well, actually I only get $800. $200 is tax which I will
hand over to Uncle Sven.
My company will make a profit on the $800 and this I pay a tax on. My customer
only HAS $800 to
spend. Do I say no to the sale or just keep it off of the books. In fact if I
keep it off of the
books, I will reduce my profit and thus my income tax (for in Sweden we also
have an income tax).
The system creates an incentive to make one's major purchases outside of the
country. Why should I
buy my BMW in Sweden if I can go to Poland and buy it there for 20% less? Or
clothing, or
electronics or food or gasoline if I live near a boarder? OK, most people
can't afford to travel
that far, but those with the MOST money to spend most often have even the means
to travel and an
even bigger incentive - in that richer people simply buy more stuff.
So, the poor schmuck with not much money can hardly take advantage of this part
of the black market.
Well, he can buy stuff that others smuggle in - like booze, cigarettes, and
whatever there are high
profits and good demand for. In fact, the smugglers goods ARE in higher
demand. They cost 20%
less!
On top of that, I who may be trying to run a legit business, simply can't
compete with the black
marketer. He will always be cheaper that I for the same goods or the same
service.
OK, you guys might hate your income taxes and your IRS. That is probably
natural - but take another
look at any suggestion to replace it. We all want a fair tax. If you can make
it any more fair,
please do! I am open to all suggestions. But the current proposal for a "fair
tax" and its distant
cousin, the "flat tax" both seems to me not to solve anything at all.
/Robban - who commutes sort of between Europe and Florida though not in my MSM.
Message: 1
Date: Sun, 27 Sep 2009 14:16:45 -0400
From: "Larry Alster" <[email protected]>
Subject: RE: NMC - Healthcare Crisis Debate / Gay Marriage
To: "'Dan Scolnick'" <[email protected]>, "'Casey Wheeler'"
<[email protected]>, <[email protected]>
Cc: [email protected]
Message-ID: <05b101ca3f9e$ac667960$05336c...@net>
Content-Type: text/plain; charset="us-ascii"
Hey Dan
Rather than just making stupid comments about it why don't you try the
concept about reading up on it before you mouth off.
Larry Alster
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