Re: Flat Tax.

• Messages sorted by: [ date ][ thread ][ subject ][ author ]
• [ Next ][ Previous ] In reply to: Daniel Dixon Next in thread: Chuck Kuecker

On Tue, 8 Jun 1999 14:41:29 +0100 Daniel Dixon <d.dixon@syzygy.net> writes:
>?
>?Charge sales tax on stocks and bonds at the same rate as on every
>?consumer item?
>?
>
>Ideally yes.
>
>A flat tax of 0.1% on every single transaction that takes place is
>the
>fairest form of taxation. This form of tax would (currently) net more
>income
>than all the current sales and income taxes that are out there. The
>financial world runs on (large amounts of) money changing hands very
>quickly.
>
>

That of course is a comprehensive transactions tax, rather than a retail sales tax. One attraction of a retail tax is that the tax enforcement need concentrate only on a limited category of relatively openly observable transactions. Spot checks to see that 'planted' transactions are reported by date, time, location, and amount could detect a pattern of evasion by a retailer. On the other hand, the comprehensive transactions tax could be rather efficiently implemented by simply taxing all bank deposit transactions, including cash, check, electronic, credit and debit card, etc. Collection costs would approach zero, as it would involve a small programming change in the software the banks already use. At such a low rate of 0.1%, there would be little incentive to avoid or evade the tax.

Ron Kean

.

.

.

• [ Next ][ Previous ] In reply to: Daniel Dixon Next in thread: Chuck Kuecker