One of the big benefits the proponents of he NST always bring up is that with a national sales tax the government would be able to finally collect tax on the underground economy in that even drug dealers would be paying taxes at the register.
Isn't this completely canceled out by the fact that pretty much the entire nation would be working what is now considered "under the table" in that no one would have to report personal incomes anymore? Wouldn't the number of illegals currently working under the table multiple significantly being that now you could have anyone working for you with no consequence (being that you would not have to expense them?
2007-03-22 16:02:06 · 2 answers · asked by Marcello 2 in Social Science ➔ Economics
Who are they fooling? Do they believe it or just want to make us believe it? You can't legislate in all the loop holes. There will always be new ones.
I'm sure if you asked them, this has nothing to do with the middle class and lower class spending way beyond their means (income) and thus would be paying more tax. The rich on the other hand, both make more money and would have the chance to put away more of their income in untaxed savings, plus would have better opportunities to buy stuff like summer homes, vacations and investments out of the country.
Sure, a rich drug dealer would be paying more tax than before, but they would take advantage of all the same things as the rich above. And there is no telling if the illegal activities within the black market would be more or less than the system now. My bet is it would be more. Why? Because it is easier to go do a onetime big purchase under the counter than it is to work day in and day out under the counter.
2007-03-22 17:21:14 · answer #1 · answered by JuanB 7 · 0⤊ 0⤋
Yes, no one would pay tax on income, and then a large black market would insue for people who would trade goods and money rather than pay tax, because taxes on purchases are extremely hard to tax.
2007-03-22 23:24:08 · answer #2 · answered by Santa Barbara 7 · 0⤊ 0⤋