Posted on 02/24/2003 1:38:02 PM PST by Willie Green
Everyone knows Joe doesn't pay taxes, Joe's company only collects, then remits the taxes. < /sarcasm >
Sarcasm aside, Joe's company, being a distributor (middleman), does not even collect taxes.
Using the nst logic, If you eliminate Joe's taxes...
You can't eliminate Joe's taxes. You only shift them to Joe's consumption side. But, what you do accomplish is to tax Jose at the same rate as Joe, thus eliminating the Citizenship Penalty.
and IF he lowers his prices accordingly his net income/profit would be the same as now.
True. But, you miss the point. Since Joe could reduce his prices under the NRST, he could compete with Jose, who would no longer have that huge income tax advantage. In fact, Jose would be paying additional taxes, under the NRST, since he would pay that tax every time he makes a retail purchase (just like Joe).
I used the example of a sole proprietorship distributor to make it easier for everyone to understand. But, I see that even that simple example was over the head of some folks.
under your NST ... the labor intensive service industries would have to (if they could) RAISE their prices 30% if they wanted to offset the new tax...
DUH!
Since a large part of a service industry's costs are employment taxes, the elimination of employment tax under the NRST, would enable them to reduce their prices even more than non-labor intensive businesses. Now I understand why you failed to grasp the very elementary example that I presented earlier.
"Citizenship Penalty"
Have I your permission to use this phrase in my presentations? I really like the image it conjures up.
Certainly. In fact, it is a term that we should all be using. All that I would ask is that when you use that term, you attribute the source.
I am currently completely reworking the original article, "Infernal Revenue", that contained the section that I quoted. I updated it several times, but so much has changed since I wrote the original article in 1998, that updates were just not enough, so I pulled it and I am reexamining every part of it for accuracy. I will repost it on Action America as soon as I can, though that may be a while, since my business endeavors are currently taking much of my time.
Incidentally, when I first wrote "Infernal Revenue" and the most popular article on Action America, "Tick-Tick-Tick - The Economy Bomb", I was firmly entrenched in the middle class. Even so, I have often talked about the threat represented by attacking the top 1% and top 5% of income earners. That's because, being involved with several international ventures over the years, I have had occasion to encounter more than a few very wealthy US expats and have found that their stories are all the same. They didn't flee the tax burden, they fled the RISK that the IRS represents, for even squeaky clean, law abiding citizens. That same RISK is why many companies have already left and many others are positioning themselves with overseas operations, to be prepared to leave. Fortunately, I have moved up the income ladder significantly since I first wrote those articles, but their truths are just as valid today, as they were then. In fact, though I am still not among the ultra-wealthy, I am in a much better position today, to validate the facts in those articles. The wealthy are leaving and they have good reason.
Of course they do and it's NO accident that they are being forced out by this COMMUNIST INSPIRED income tax system Americans labor under!
As usual, the article is SPOT ON!
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