So this is the same thing as a Value Added Tax used in Europe?
The thing I wonder about for both this proposal and the Flat Tax proposal is whether home owners will actually be willing to give up what for most was the only reason to buy a home.
This would shift the home situation in the US significantly towards renting.
This would be especially devastating right now with home prices taking a dive anyway.
This would cause them to drop like a rock in my opinion.
The article says 5% on every transaction with electronic transactions automatically taxed and cash transactions subject to the tax as well.
Let me see if I understand this.
When I am paid my salary 5% is taken out.
When I deposit the money in my bank another 5% is taken out, correct?
If I withdraw money from the bank to buy stocks another 5% is extracted. When I sell my stock another 5% is taken out.
When I deposit the proceeds from the stock sale back in the bank another 5% is taken out.
Is this correct?
Is every financial transaction subject to this tax?
Wouldn't the government eventually get it all unless I used cash for transactions and (illegally) didn't report them?
Hey, you should be on cloud nine.
The more they tax, the more they can spend, and the more your buddies in Washington can hand out a living to the lazy, self-indulgent slobs that will not work at our expense.
also from the website "Federal, State and Local taxes combined are 32% of national income (2002 figures)." So even if you deposit your pay and buy stock - the total would only be 10%.
Actually, the E-tax in Australia is only .33% (note thats "point" 33%) So the 5% is a bit high.
The problem is the Fair tax is the ridiculous "pre-pate". Just more govt red tape and ....
You can be as "serious" as you want to be but it ain't gonna get rid of your taxes!
In fact you pay taxes now so your high "moral" stance isn't doing you much good is it?
Since you've already compromised your beliefs What other compromise could you accept as a viable alternative to the IRS CODE?
I didn't say cash transactions wouldn't be legal.
I said they would be taxed.
So does the web site you quoted from.
Q5: Is there any form of record keeping done to be able to at least exercise some control?
A5: All transactions must be documented, but all transactions (deposits) that are done via a bank are automatically deemed documented. Cash transactions must be reported within 14 days after the transaction date on a declaration form available at any bank. Those declarations are to be presented to a teller at a bank and the 5% tax is to be paid at that time.