We Pay Tax So Why Should We Pay Tax (Linked)

[peace2011]

Everyday we pay sales tax, value added tax (VAT) when we buy food and products. We pay tax on factory sales, custom duty, toll tax which are added to final selling price. Indirectly we pay many taxes.

The more a person consumes the more tax the person pays indirectly. Why should we pay tax on personal income (personal tax)?

I am saying that there should be consumption tax only. No personal tax.

Consumption tax = Sales tax + value added tax (VAT) + factory sales tax + custom duty + toll tax

This will reduced excess and wasteful consumption since the more a person consumes the more consumption tax the person will pay.

Income and private property are good things and are essential to a free society, therefore it makes no sense what so ever to tax those two items. A sales tax and user tax is the way to go. It's fair because you only pay a tax if you choice to buy an item or freely spend your own money.

No taxes means no army. Somebody will build a strong army and attack the country.

Tax evasion or tax cheating will be eliminated completely when there is consumption tax only since everybody will pay tax immediately when they buy goods and services. I think Charted accountants (CA) are responsible for majority of tax evasion because they give suggestions to minimize and hide taxes and CA certifies the financial statements and accounts. No need for certifying your income from Charted accountants (CA) when there is consumption tax only.
reduced- read the rest at the link-Meister
http://www.politicalforum.com/economics-trade/192865-we-pay-tax-so-why-should-we-pay-tax.html

 

[peace2011]

Inflation is an invisible tax that is used to spend more than gov't takes in. Inflation of fiat money is easy when there are no hard assets backing the money.

Inflation robs people of Purchasing Power (same as a tax). Inflation transfers productivity and assets of workers to those who sit in chairs and create the fiat money (or loan it out).

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Taxing with Inflation

Most countries have a progressive income tax--that is, as income goes up, so does the tax rate. Thus if income doubles, taxes will more than double. With this system, inflation will push people into higher tax brackets. Suppose a person starts at an income of $10,000 and a tax rate of 10% or taxes of $1000. If prices and wages all rise by 20%, he will have an income of $12,000. If his tax bill were $1200, he would pay the same real purchasing power to the government. But if the tax rate at $12,000 is 11%, he will pay $1320 to the government. This means that the government can raise taxes by causing inflation, without ever formally acting to raise tax rates.

Inflation Tax

Inflation has been called "the hidden tax" and that is exactly what it is. When the Government "prints" extra money what do you think it does with it? It spends it of course!

Further deflation propaganda fraud is perpetuated by academics and the mainstream press by pushing the low core inflation argument.

Governments around the world are using inflation to reduce debt.This hidden tax is on pensions, through V A T and other stealth taxes.Government will no longer use RPI ,CPI will will be used for increase in state pensions.Why are there pension crisis?People live longer and governments create inflation to reduce debt, and fiddle inflation figures.If governments told you the true inflation rates, pay rises and pension rises would make it difficult for governments to deal with.The method of reporting inflation is changed regularly to show low inflation to the masses.

Goodbye M3- What is the Government hiding?

There are two obvious answers to thequestions, esp regarding inflation.... First our government is multi tiered and each tier independently funded. So they all need an independent revenue stream. But another answer is that a tax is best that is most stealth. If you don't realize that you are being taxed you won't resent it.

Which is why you only pay 1/2 of your FICA tax, your employer pays the other half. In reality the employee is paying all of it, but by stealth is fooled into believing that he only pays half of it. All taxation, like lottery, is a tax on the mathematically impaired. If you are smart enough to figure it all out you can avoid paying most taxes, legally.

If not, well they have a tax trap waiting for you at every street corner.

 

[Mr Natural]

Don't worry.

A republican will get elected in 2012 and you won't have to pay anymore taxes.

 

[peace2011]

Criminals with big spending habits would pay consumption tax even. Consumption tax is the best. There would be way less tax evasion and ways to evade taxes and way more taxpayers.

Tax on profit from silver, gold and other investments, property tax gets included in consumption tax. No need for any other tax.

If a billionaire earns $5 Billion in a year, why should he pay 30% tax or $1.5 billion tax for that year. Understandably he will not spend $1.5 Billion in a year. If he is spending $500 million in a year he should pay consumption tax for $500 million.

Every person, every business, every entity pays taxes at exactly the same rate. A consumption tax with no exemptions, no exception. Plus the people that consume more (the corporations) are kept in check. This would also reduce hatred over taxes. The envy factor is reduced. and most importantly EVERYONE poor, middle, and rich pay taxes into the system.

I am saying why should we (rich and poor) pay tax twice. Indirect tax and direct tax.

Indirect tax = Sales tax + value added tax (VAT) + factory sales tax + custom duty + toll tax

Direct tax = Personal income tax.

Just pay consumption tax as per your consumption.

People who are paid less or meager salaries they should be paid 3 times more salaries and people who are paid high salaries their salaries should be reduced by 50% because these high paid professionals such as CEO, managers, MBA, CA and others are responsible for present never ending financial crisis. So consumption tax will benefit everybody.

If world leaders would have thought of "consumption tax only" 100 years back, then today world resources would not have been in serious trouble and world money would not have been exhausted/finished due to tax evasion and cheating (one of the main reasons).

If a billionaire earns $1 billion then he is risking $10 billion as investment. If his decisions go wrong he will be bankrupt. A "job person" does not invest any money so his investment risk is 0.

Majority of Tax evasion is from rich people. Tax evasion or tax cheating will be eliminated completely when there is consumption tax only since everybody will pay tax immediately when they buy goods and services.

Value added tax or VAT should be eliminated completely. There is no need for VAT when we pay Sales tax.

You will have 25% more money to spend since you will not pay personal tax. Eliminate government greed once and for all.

Think about you and your family who will have 25% to 40% more money to spend. Forget the world. If your company is having less sales you will be fired from your job immediately. Nobody will think of your family.

IRS, lawmakers,lawyers,army of accountants can always start farming. They are rich from 100 years of their professional income. Also you will not have to save thousands of bills every year to show to the accountants and IRS when there is "consumption tax only". You will not be slaves to anybody.

No other tax. Only consumption tax. If you do not spend then no tax for you. You will be taxed only when you spend.

Poor people who earn $5000 per month, pay them $15,000 per month. Reduce the salaries of high paid professionals such as CEO, managers, world leaders, politicions, MBA, CA and others by 50% because they are responsible for present never ending financial crisis.

Salaries of government people such as federal reserve and bankers should be reduced by 75%. President and politicians should work for $0 salary.

Only a person who is worth $10 Billion should be the President. He should pay for his president expenses. The same applies to other politicians. When you are serving the country why do you need salary. President job and politician job should be charity job.

Salaries of Secret Service, Army, Other FBI should be increased by 100%.

Salaries of police and financial FBI must be reduced by 50% because they blindly obey idiot politcians.

The Fed levies the Invisible Tax - Inflation. Inflation is a regressive tax, since it adversely affect the middle-class and poor the most.

Since the estimate is that the dollar has lost 95+% of it's value since the creation of the Federal Reserve, it seems the saying "America was built on the backs of the middle-class" is particularly true.

 

[peace2011]

Don't worry. A republican will get elected in 2012 and you won't have to pay anymore taxes.

No taxes means no army. Somebody will build a strong army and attack the country.

 

[peace2011]

Angry Greeks say new taxes to hurt middle class, again

Angry Greeks say new taxes to hurt middle class, again

Greeks seething after two years of belt-tightening reacted in anger Thursday against a new round of tax rises and spending cuts worth some 3.8 billion euros which they said would again hit honest taxpayers hardest.

Coming on top of a 10-15 percent reduction on pensions and salaries over the last year and a half, the raft of new measures announced by Finance Minister Evangelos Venizelos will cut average earnings by a further 3-4 percent, analysts said.

Angry Greeks say new taxes to hurt middle class, again | Reuters

 

[peace2011]

Discuss please.

 

[peace2011]

Let us assume consumption tax is 10%.

A person who earn $80,000 per year. If this person spends $50,000 per year, the person will pay $5000 as consumption tax.

A super-rich person spends $500 million per year, this person will pay $50 million as consumption tax.