koffieboon on 12 January 2008
| Entroper said: With an income tax, evasion comes from individuals. With a consumption tax, evasion would have to come from businesses. There are far fewer businesses to track than individuals, so I think compliance would be better with a consumption tax. A few people running flea markets and garage sales and not charging tax doesn't bother me so much. |
It is not about a few people running minor businesses, it is about people travelling outside the US to do their shopping abroad, where sales tax are a lot lower. We're talking about people smuggling those products into the US to sell for a big profit because sales tax are so high in the US. If the price of products in the US is a lot higher than outside of the US there is a opportunity to make money for people. And history taught us people will take advantage of it. And actually, if it is really big money were not talking about individuals making a little extra money but organised crime making billions of dollars.
