Thread: Why the “FairTax Revolutionâ€

Originally Posted by redpony353

YES YOU CAN CHARGE TAX AT ALL THREE LEVELS. WHY WOULD YOU NOT CHARGE TAX TO ALL THREE LEVELS? THEY ARE BUYING IT TAX THEM. THATS THE WAY IT WOULD WORK.

That would be stupid, triple or even just double taxation.
You need to look how the current State level sales tax works. If you charged 6% at all three levels your sales tax would be 18%, more if you calculate the tax on the tax of the previous level.

Sales tax only applies to items sold at the retail level.
Sometimes manufacture sales to wholesaler who sales to retailer who sales to customer, that would be triple taxation.
Sometimes Manufacturer distributes his own product and sells directly to retailer who then sales to customer, that would be double taxation.
And sometimes the manufacture sells directly to the customer.

They only tax the final sale to the customer so as to be fair to all.
Retaillers and wholesalers don't have to pay sales tax because they are expected to resell the item to a customer and only the final sale is taxed.

Now we live in a free country anyone who wants to and knows how can get a retail liscence and buy from wholesalers or get a wholesale liscence and buy from manufacturers. These people are exempt from paying sales tax because they are supposed to resell the item to a customer and charge a tax at that time. Legally if they don't there is a special form to fill out so they can charge the tax to themselves, but nobody ever does that.

Should be, could be, wished it be, or assumed it be doesn't work. It is as it is. The National Sales tax will be no different and like the state sales tax legal enforcement will be virtually non-existent because it cost too much to do it.

BTW you mentioned something about taxing capital profits earlier. That would drive our economy into the trashcan. You think only rich people buy stock? Taxing capital investments is the same as double taxation. The money was taxed when the company reported it's taxes why should the owners (stock holders) have to pay taxes again on the same exact income (ie growth from their stock)? Our economy is good because they cut back on that capital taxation. Without people investing money into businesses, those businesses couldn't run and our economy would come to a halt.

WE ARE NOT TALKING ABOUT THE WAY IT WORKS NOW. WE ARE TALKING ABOUT THE WAY IT WOULD WORK UNDER ANOTHER SYSTEM. A SYSTEM THAT WOULD BE BASED ON CASH OUT NOT ON CASH IN.

IF THE CURRENT TAX SYSTEM WERE ABOLISHED HOW WOULD THE MANUFACTURER PAY TAX IF NOT ON WHAT THEY BUY? IF THEY WOULD NOT BE PAYING TAX ON WHAT THEY MAKE IN SALES BY FILING A TAX FORM EVERY YEAR? EXACTLY HOW WOULD THEY BE PAYING TAX THEN? THEY WOULD PAY TAX ON MATERIALS THEY BUY TO MANUFACTURE THEIR PRODUCT. HOW WOULD THE DISTRIBUTOR PAY TAX? IF THEY ARE NOT REQUIRED TO PAY TAX ON WHAT THEY MAKE? THEY WOULD PAY TAX ON WHAT THEY BUY THAT'S HOW. AND THEN TO THE RETAILER.

YOU ARE SO STUCK IN THE CURRENT SYSTEM THAT YOU ARENT EVEN LOOKING OR TALKING ABOUT THE PROPOSED SYSTEM.

AND MONEY IN THE CURRENT SYSTEM IS TAXED AND TAXED AND TAXED TIME AND TIME AGAIN. IF YOU WROTE DOWN ALL THE ACTUAL TAX YOU SPEND IN A YEAR IT WOULD MAKE YOUR HEAD EXPLODE. YOUR INCOME IS TAXED OVER AND OVER AND OVER AGAIN.

FOR INSTANCE. WHEN YOU GO TO THE STORE AND BUY AN ITEM......HAVENT YOU ALREADY PAID TAX ON THE MONEY YOU ARE SPENDING? BUT THEN YOU PAY SALES TAX. WHAT ABOUT YOUR PHONE BILL. MANY TAXES THERE. YOU PAY WITH MONEY ALREADY TAXED. SO THEY TAX MONEY EVERY TIME IT CHANGES HANDS IN THE CURRENT SYSTEM. EVERYTIME.