Again you need to read the info on the bill. It's not the same as a flat tax or a VAT for a number of different reasons.
Not the least of which is the Prebate which allows the "poor" to live virtually tax free. Larry Alster 91 Miata White Knight 92 Miata Silver Bullet 92 Miata Honey B 04 MSM MX-5 Whooosh 06 WRX STi Subie -----Original Message----- From: [email protected] [mailto:[email protected]] On Behalf Of Rob Argento Sent: Sunday, September 27, 2009 3:41 PM To: [email protected] Subject: RE: NMC - Healthcare Crisis Debate / Gay Marriage /Fair tax 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 _______________________________________________ Miatapower mailing list [email protected] http://list.miatapower.net/cgi-bin/mailman/listinfo/miatapower _______________________________________________ Miatapower mailing list [email protected] http://list.miatapower.net/cgi-bin/mailman/listinfo/miatapower
