Korean Job Discussion Forums

Tiger Beer · Joined: 07 Feb 2003

Didn't realize there was a movement or that it would hit headlines.. but figuring it would happen in Jacksonville Florida of all places.. it must have some kind of movement even to the generally well-known non-political parts of the country.

http://news.yahoo.com/s/ap/20070708/ap_on_el_pr/on_the2008_trail_30;_ylt=AjqvvK3s.bh0bSp8I9z1ttVpu6cv

mindmetoo · Joined: 02 Feb 2004

So instead of taxing people's incomes, the price of everything people buy would be massively jacked up by a sales tax. Retailers would be forced to account for larger amounts of money and the inherent risk of collecting and handling that money before remitting it to the government.. Yeah, I can't see any political party wants donations from business implementing that kind of tax reform.

thepeel · Joined: 08 Aug 2004

Well, mm2, kinda. Income isn't taxed, because we don't want to discourage working. The necessities of life are also not taxed (water, basic foods, health care etc etc). But those goods that fall beyond what is necessary are taxed to all hell. And pollution is hit extra hard. This would be a massive change on the economy, but a good one. It would help us move away from being such a consumer based culture.

We should tax that which we don't want and not tax those things we want.

mindmetoo · Joined: 02 Feb 2004

caniff · Joined: 03 Feb 2004 Location: All over the map

How would this effect the price of beer?

On the surface, it sounds like a good idea. But doubt this will get legs since the pols are in bed with those who would be hardest hit (basically agreeing with MM2).

I imagine, though, that it might straighten out the 'problem' of American saving habits. The Chinese save to much, I hear, while most Americans not enough.

That was certainly true in my case while I resided there. But I was young and full of p!ss and beer and stuff.

mindmetoo · Joined: 02 Feb 2004

thepeel · Joined: 08 Aug 2004

mm2, you are right on both counts. It won't happen. Also, if we all just saved or consumed we would be much worse off. But the idea is to swing the pendilum in the other direction.

bonanzabucks · Joined: 09 Jun 2007 Location: NYC

As an accountant, I can tell you that this will never pass. Why? Because the moment someone implements a flat income tax rate, we'd all be looking for work!

Every Republican candidate has always suggested a tax rate along these lines, yet when they're elected, little changes. Supposedly, the only one who was serious about doing it was Ronald Reagan, but the accounting lobby (and they're quite powerful) was vehemently against it.

Personally, I'm all for a flat tax rate because I see how well it's worked in Eastern Europe (especially Russia), Singapore and HK. Besides, I like doing financial analysis work much more than accounting, the latter of which is too boring! If it wasn't for the stability, I wouldn't be in this field.

mindmetoo · Joined: 02 Feb 2004

sojourner1 · Posted: Tue Jul 10, 2007 6:56 am Post subject:

Having a fair consumption tax where the only tax is sales tax would create an efficient economy in which people would refrain from over consuming. You probably would see obesity decline and the diet fads industry would decline due to thriftyness to reduce tax. It would actually increases savings which businesses do not want, because they want everything we got, even future paychecks, while keeping us in debt as to control us as cash cows. You would see more all around fairness when it comes to consumerism if there was some sort of fair taxation system in place. The cost of everything might go up due to lower consumption equaling lower sales for businesses.

Having a fair consumption tax would be better for our physical and financial health and our environment.

Now collecting the taxes from businesses would be easy if you simply make it a flat tax of all sales revenues pouring into business bank accounts that customers already paid tax into. Of coarse corporations today are too powerful to be controlled that much by any branch of the US government. Keep in mind that Americas corporations as a whole have many many times more money than Uncle Sam has which makes Uncle Sam the little brother in charge of law enforcement as a tool to control the people for farming them out as cash cows.

If the US government and corporations were really about being fair, then we would have a consumption sales tax or a flat taxation of each dollar we earn, but corporations won't allow that since they get big tax breaks in the overly complex taxation model we have today that they lobby for. So many people know the current taxation system needs to be scrapped and replaced by a fair consumption tax or flat tax.

About 8 years ago, I wrote a research report on flat taxation of income and decided it would be beneficial for everyone in being fair and promoting efficient consumerism. While not the same as a sales tax only system, it is similar in that we all pay the same percentage for each dollar earned or spent, regardless of everything else involved with how you make your money. We had flat taxation about 70 years ago or more and it was a fair and efficient system for consumers and businesses alike. In the 1930's, there was a 1% flat tax on all income and no sales taxes.

There is allot involved and it is one big commingled mess we have today when it comes to business, finance, law, and society which all intertwine together. It requires an interdisciplinary study to begin to understand any one part of it.