Email address obfuscation in effect -- please
click here to turn it off.
[
Date Prev][
Date Next][
Thread Prev][
Thread Next][
Date Index][
Thread Index]
Mike Miller wrote:
One major problem will be to make sure that item sales are documented
accurately. Suppose there is a 40% tax and someone is selling a car
for $20,000. The seller could tell the buyer that he'll write it up
as a $10,000 sale to save $4,000 in taxes and split that savings with
the buyer. How will we stop them from doing this? We can't stop all
income tax fraud, but we do have a government agency investigating
it. We will need a new agency to investigate the new kinds of fraud
that arise with a new tax system.
Two problems here Mike. The first is that people have been doing that
forever. I mean, duh. I would say that the majority of private vehicle
sales are fraudulently undervalued when taxed and licensed.
Also, there is no luxury tax or special tax... the amount is 23%...
flat.. for everything.
You've also misread my earlier post so there are even additional problems.
1. You and the dealer would not be taxed on the vehicle I believe. I
believe the taxes have already been paid at a lower level if you will.
2. In a private sale of a previously owned vehicle, you would not be
paying tax on the sale since there would be no double taxation.
I'm probably getting this all wrong, but that's my present understanding.
Read the book.
Neither of you have mentioned one of the greatest attractions the
fair-tax provides.... No DOUBLE TAXATION or triple or whatever. When
a _new_ item is purchased it is taxed. When it is resold ( a car is
a great example), that sale is not taxed a second time. How stupid
is it that we have to keep paying taxes over and over on an item
that's already been taxed?
Well, given that it is a *sales* tax and not an *item* tax, I guess
tax on selling makes sense. What is wrong with that? I don't see why
it is stupid.
Will the massive tax apply to home purchases? Only to new homes and
not to used homes? New cars but not used cars? How will "new" be
defined? Again, you need rules and investigative bodies to deal with
"newness" fraud. If I build a house, then "live in it" (however that
is defined) for a week before selling it, is it "new" or "used"? When
Ford sells a new car, can they call it used if the lend it to an
employee for a week before selling it? How will you deal with these
kinds of problems. Of course you will need a large federal government
bureaucracy with thousands of hated investigators snooping all over
the place.
Yes only to new homes.. It doesn't matter if it's a roll of toilet paper
or a luxury business jet... the tax rate is 23% and no taxes would be
paid on it by the purchaser. The tax has already been extracted on the
component pieces. Again.. if I'm understanding this correctly.
Mike
_______________________________________________
discussion mailing list
EMAIL:PROTECTED
http://mlug.missouri.edu/mailman/listinfo/discussion
--
Christian M. Cepel - Thistledowne Productions - http://thistledowne.org
Computer Support Specialist, Sr. - University of Missouri - Columbia
College of Education - School of Info Science & Learning Technologies
VRCbd, KidTools & StrategyTools Support Systems Projects, and Truman,
Library Whistlestop Project - Web Design & Programming - 573.999.2370
_______________________________________________
discussion mailing list
EMAIL:PROTECTED
http://mlug.missouri.edu/mailman/listinfo/discussion
Home | FAQ | Server | Presentations | Mailing Lists/Archives | Member Tools | Links | Sponsors | Contact