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View Diary: EconPop Series (6) The Coming $50 Billion Unemployment Bill (16 comments)

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  •  Many misconceptions (0+ / 0-)

    First, I am not advocating a VAT. An Ad Valorum 10% retail consumption tax would only be added at the point of sale. The price of the product or service would include the tax (ad valorum), the customer would not be required to maintain records or save receipts. The retail mechant would just be required to add total sales and remit 10% (less .25% or $200 which ever is greater to cover costs of compliance)to the federal coffers. It's very simple and straight forward not like a VAT. A VAT would be a compliance nightmare. Labling all consuption taxes a VAT or Sales Tax deflects real debate and is how the rethugs argue points, so please don't go down that road. We progressives should be able to discuss things without falling into the same traps that plague the rethugs.

    Next, most off shore capital markets already have transaction taxes higher than .5% and the tax didn't effect their business. Plus, it would not effect the account managers, the tax would inflate the price of the transaction by .5% and be collected by the exchange and the remitted to the federal government. It works this way now and the rates where higher until 1966, why not kick the rates back up again? The investment class must be required to contribute to federal tax revenues to pay for the benefits they enjoy. For the last 30+ years they have been getting a free lunch.

    You really misunderstand if you think these ideas are only about me. Yes, I'm a lower middle class wage earner but I work with hundreds on small business owners and I see how much they are negatively impacted by these federal taxes. Small business is the primary source of jobs and increasing stress on this group reduces employment opportunities. By reducing the costs of federal taxes on small business more jobs will be created and more federal revenues will be generated. The working poor and small business would be the largest beneficiaries of my federal tax reform ideas. The wealthy would be required to pay their share without the ability to defer liability. These ideas will stimulate the entire economy from the bottom up. This may sound like the wingnut model to you, but they would hate this idea because they would have to actually pay their fair share for a change.

    Really don't mind if you sit this one out. My words but a whisper -- your deafness a SHOUT. I may make you feel but I can't make you think..Jethro Tull

    by RMForbes on Fri Jul 17, 2009 at 09:35:32 AM PDT

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