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To: Paul Engel who wrote (28927)2/19/2001 5:58:39 PM
From: Bill JacksonRead Replies (1) | Respond to of 275872
 
Paul, I pay what taxes I must pay, I avoid taxes wherever I can, as we all do and I lament when others escape where I must pay. I feel a level play field with everyone paying their taxes will result in lower % taxes on each of us as the avoiders/evaders are made to pay.
In time the USA will go to a VAT style tax system for sales as it gets rid of exemptions.
For example in the Feds implemented a 6% VAT and shared that with the shipped from and shipped to states equally they would each get 2% and on average would get about 4%, depending on their trade balance vis-a-vis other states.
Since every manufacturer would charge 6% on whatever they sold whenenever it went to a USA buyer and they would then remit 2% to each government. If they sold it to a reseller he would add his markup and charge the buyer 6% and remit this 6% to the 3 governments, less the 6% on his cost base.

Works well all over, hard to evade as all goods get taxed and so if you want to buy with no taxes the seller has paid his 6% already so he must collect that as well s his cost to break even, and then he wants a profit too.
State sales taxes are a sieve and around 35-40% are lost through evasion through fleamarkets and faked resale certificates.

Bill