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AnnC
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State & Ontario
Sep 1999 time: 23:19
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If you advocate (or are willing to tolerate) a national sales tax, there are a few things that you need to understand:
1. To be revenue-neutral, a national sales tax would have be 27-33% (depending on who's doing the analysis) and it would have to apply to every transaction wherein somebody buys a product or service. So if you buy a house, you pay ~30% sales tax. If you go to the doctor or enter the hospital, you pay sales tax on the fees. If have a cleaning service or home-repair contractor do work for you, you pay sales tax. You won't be able to avoid the sales tax simply by growing your own vegetables.
2. A national sales tax penalizes consumption, which might be a good thing (in theory) given the materialism of our culture. But some people, like middle-income families with children, have little choice when it comes to consumption - they've got to spend whatever it takes to feed, clothe, and house their children. They don't have the flexibility that a single man does.
3. Right-wingers are the ones who support a national sales tax, and these are the same people who claim to be ardent free traders. They don't want any kind of tariff or trade barrier on transactions across international boundaries, yet they're willing to impose a ~30% tariff on our domestic trade. So you can see what will happen: consumers will have a huge incentive to buy goods outside of the US (which is easy to do on the internet) and our domestic economy will suffer even more than it already has.
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Geronimo
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st cloud USA
Jan 1970 time: 05:19
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quote: Originally posted by Imran Siddiqui
Only for a few years... which is why Bush is pushing for his cuts to be permanent. It was originally for 5 years, I think, just for recovery purposes. |
Even if 'permanent' they will still be as simple to remove as they were to enact in the first place right?
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Geronimo
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st cloud USA
Jan 1970 time: 05:19
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quote: Originally posted by Japher
That they did, and incase you didn't know that means less jobs for Americans... and that is not a good thing. |
Why in the hell weren't the imports taxed in the same way? Sounds like some sort of reverse tarriff rather than a luxery tax.
The government certainly seems to have a knack for fixing taxes by standing them on their head.
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