Re: [MLUG - DISCUSSION] Flat Tax

["Christian M. Cepel" <EMAIL:PROTECTED>]

I'm still not sure, but I think a lot of this would also be done on the raw material level which are generally a much fewer collection of companies than say the millions of retailers that sell the finished product.  This would eliminate any taxes for the middle man part of the operation.

If I understand things correctly.  That would mean that bureaucracy would be even further reduced  by several orders of magnitude.

shivers90 wrote:

The IRS would not be abolished, but reduced
considerably.  Instead of them watching everybody for
income, sales, etc., all they have to do is watch
businesses and their transactions.  They also receive
reports regularly from businesses instead of millions
of individual tax returns at one time of the year. 
They only need to look at what the business charged
the customer for the product and make sure they
collected the correct tax, instead of is this person
entitled to take this deduction, did they report all
their income, etc.

--- Mike Miller <EMAIL:PROTECTED> wrote:

  

Of course it would be an advantage to abolish a
federal agency, but to 
what degree will new agencies be needed to oversee
the new program?  It 
sounds like one bureaucracy will end, but another
will be created.

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.
    

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Christian M. Cepel - Thistledowne Productions - http://thistledowne.org
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College of Education - School of Info Science & Learning Technologies
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