The FairTax, Join in!

[Kasz216]

Eomund said:

koffieboon said:

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.

Organised crime would make money? O wait they do that now... just kidding then. Criminals will do anything to make money or power, which ever is more important to them. There are already underground markets and economies that are estimated at over $1 trillion. As far as I know, smuggling is a crime, not a tax evasion problem. They would be prosecuted as such. When people legally import goods or claim them at customs they would pay the FairTax if I understand it correctly.

The shopping abroad argument is fairly weak too. It is expensive to shop abroad for expensive goods. If people want to buy something cheap what is stopping them from crossing the border now and buying it in Mexico or Canada.

 The US dollar.  I know a lot of people that used to drive to Canada to buy goods.  They stopped since the dollar plummeted though... and now Canadians cross the border and buy stuff over here.

 I'd probably take some trips to Canada myself to pick up exensive goods. 

Honestly it seems to ring hollow to charge anyone a consumption tax for money they spend overseas or in another country.  Thereis no basis for it.

Unlike income taxes, which they deserve a cut because presumably your job exists because of the market conditions the country and city have created.

A consumption tax levied on foreign goods makes about as much sense as  an income tax that is regressive because it's trying to tax wealth.  Even current foreign taxes are hazy but they make sense because they are applied to the exporter not the importer.  The exporter pays for the right to do buisness with people from another country. 

I shouldn't have to pay the government anything if i wish to do buisness with another country.