TW>>>> IT states NOTHING about "Payroll Deductions"

 RW>>> Read it again. Klahn likes to confuse you into thinking
 RW>>> something is actual when it isn't. Yet.

 BK>>  You had it more correct above. Sales taxes are not included in
 BK>>  the price of the product, they are added on at time of sale, and
 BK>> accounted for seperately. Payroll taxes are included in the  price of
 BK>> the product. They go on before it hits the sales  counter.

 BA> Any way you want to slice it, the people of this country
 BA> will not stand for a 30%
 BA> federal sales tax on top of the existing 5% to 10% state
 BA> and local sales taxes. You want to destroy this country's
 BA> economy, go right ahead.

 The total tax burden in this country is in the area of 30% of
 GDP. That was tied with Japan for the lowest, last I looked.

 Social Security takes about 4.5% of GDP, and that is applies
 only to a payroll tax. Since that payroll tax only applies to
 goods and services manufactured or provided in the US, only the
 domestic part is taxed. So, the current 12.5% social security
 tax, spread out to all sales, will drop considerably. Long ago I
 learned that salaries were about 50% of the price of a product.
 Spreading the tax to 100% of the price would drop the tax by
 50%. Or, 6.25%. Now, spread it further to all goods and services
 sold in the US, not just domestic, and you spread it I don't
 know how much further, whatever the portion is imported.

 I will estimate a 6% social security tax just to be on the safe
 side, possibly lower. That would be the sales tax or VAT.

 Now, removing 12.5% of the cost of a product from the wholesale
 price, and adding 6% to the price of all goods, equalizes the
 cost between imported and domestic, meaning a 12.5% gain for
 domestic manufacture. And that should either prevent some
 industry from leaving, or even bring some back.

 Now, if we can just get national health care, that will give US
 manufacture another advantage, which means more in this country.

 The end result is lower unemployment, which means more workers
 supporting the system, which spreads the cost even more, which
 is a very good thing.

 Keep that up and we may actually balance the budget for real.

 BA> You'll find that the sales tax-free barter economy will
 BA> mushroom.  And I would expect that any tax persons who try
 BA> to enforce sales taxes on that economy just might (very
 BA> justifiably, IMO) get hurt.

 That was one of my objections to the so called "Fair Tax", since
 that would require taxing between 20 and 30 percent. By staying
 well under 10% I believe that incentive will be nulified.

 Oh, as to the justification for hurting the tax collectors,
 remember, those in the "grey" economy make the same demands on
 our system, but don't want to pay their share.


BOB KLAHN bob.klahn{at}sev.org   http://home.toltbbs.com/bobklahn

... Would reading Penthouse give you visual aids?
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