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Originally Posted by Manx
............. it does nothing but shift the tax burden to the lower-middle and lower classes. There are certain things in life that everyone purchases or are essential requirements. Low-mid and lower classes spend most of the income on these things. Upper class spend essentially none of their income of these things. Lower classes will then be able to afford less of these essential items while the upper classes will simply export their purchasing of high-ticket items, shelter those purchases in a business, or transfer ownership via some new loop hole.
........... The rich require higher taxes.
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While our current tax system looks good on paper, in reality the rich pay a fewer percentage in taxes now than the middle and lower class because the current tax code has "loopholes" designed specifically for the wealthy. The wealthier someone is the less percentage of their income they actually pay. Everyone [well poor and destitute Democrats anyway] always wants to soak the rich and since most of our elected federal officials fall into that wealthy class you can bet your ass they engineered loopholes to benefit themselves. Currently you are able to shelter big purchase items in a business so nothing would change unless we remove that loophole.
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Originally Posted by alansmithee
edit- I read over the site, and checked out the FAQ, and from what I could tell, it is still very regressive. They haven't adressed the fact that somebody making $500,000 per year could easily pay the same in taxes as somebody making $100,000. Also, people might not bother doing grocery shopping in foreign countries, but I could easily see the very luxury goods they describe as being what rises the consumption of weathier people being bought out of the country. And since it seems from their description that they implement the tax at point of sale, it would be hard to keep track of such purchases. For instance, I live in MIchigan, if I'm buying a new car, I have no reason not to buy it in Canada, where it would be substantially cheaper. Same if I were to purchase the jewelry or filet mingnon they mention on the site. Honestly, the tax code might need some work, but I don't see this being the way.
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Automobiles could easily be taxed at the licenses branch or whatever it is your state actually calls the place where you transfer ownership and purchase tags, much like it is currently. In addition if there was a huge penalty added, an import tax, it would discourage this type purchasing behaviour. You might be able to smuggle some small items such as jewelry or groceries but big ticket items could be easily taxed properly.
The current tax code sucks but it won't be changed simply because the rich would actually pay more taxes than they do now. As I stated above the people making our tax laws are considered wealthy and changing the tax code would cost them money.