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Taxes
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Quote:I have an issue with this. For one, it creates a massive loophole on the biggest purchases (and therefore, the highest tax generators). Would a house be considered "used"? Because the overwhelming majority of home purchases in this country are "used" homes. Cars are another example. 1.) The purpose of the concept was to ensure against double taxation. In other words, once a good has been brought to market and taxed it shouldn't be taxed again. 2.) There would have to be an enforcement mechanism. At the same time instead of having to manage 150 million returns and every detail of everyone's life they would be focused on the companies bringing new goods to market. 3.) I think that in the case of the bike, the company that makes the bike would have to show two things, the bikes they made and who they sold them too. that's a lot less cumbersome than a 70k page tax code. 4.) The TAX FREE sign on the Mom and Pop shop would be a little piece of gold. That means that they wouldn't have to file a return on any profits to the tax service and they would only have to comply with inventory. I don't think a lot of people would want to screw that up. 5.) The new car already costs a lot more than the used car. In most instances New products and new construction market based on quality over used items and concede the fact that they are probably priced higher. There is a limit to how far this goes and that brings me to my next point. 6.) Producers of new goods and services would be under new market pressure to manage costs and that will help to ensure one of the intended benefits of repealing all of the EMBEDED Taxes in the delivery of goods to the market. When you apply the consumption tax after you strip away what was previously embedded, the new after tax price should be roughly congruent with what you were paying before. So if you have an item that cost 1000 before the idea is that now the company would only be looking for 750 pre tax. Again, there are some draw backs, and i think that while it makes sense on paper, people would have to see the pre-tax numbers come down to maintain the same ratio for the price of new goods to the price of used goods and at least be able to see how you could find an equilibrium point or the system wouldn't work. We show less advertisements to registered users. Accounts are free; join today!
Most states have a mechanism to reduce double taxation on goods sold for resale as it is...
So for instance, if you are a retailer, you buy from the wholesaler, present a certificate to the wholesaler that says "don't charge me tax, I'm gonna pass it off to the consumer", and then when the retailer makes his sale, the "Sales tax" is charge to the "end user". In New Mexico, that certificate is called an NTTC and can only be issued by the state. If you don't have that NTTC and are audited, you're hosed. Quote:Most states have a mechanism to reduce double taxation on goods sold for resale as it is... Same thing in Florida I don't pay taxes on parts i sell to customers Quote:The topic title says it all. Taxes have been brought up in other threads, so perhaps a discussion on different ideas regarding taxes is in order.I'm liking this provided the process is monitored and verified... |
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