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Having a business to reduce taxes would also reduce taxes at the local level, where it is more likely to raise suspicions. It would, therefore, become policed at the local level and the Feds would not have to expend any enforcement money.
Having a business to reduce taxes would also reduce taxes at the local level, where it is more likely to raise suspicions. It would, therefore, become policed at the local level and the Feds would not have to expend any enforcement money.
Suspicion of what???
There is nothing illegal about it.
As long as all of the investment is at risk.....and you participate.
Suspicion of having a business for the sole reason to evade taxation as opposed to having a business designed to generate an income through selling something or providing a service.
I heard of this before, I haven't read back the 15 preceding pages, but these are the issues I always see with this:
1). Any sales tax rate high enough to fund the operations of the entire federal government would spawn huge black markets to avoid the tax. I would see huge underground barter markets springing up.
2). People with portable sources of income could always just go expat, keep their source of domestic income, but live abroad and not consume in the US. If they're living in some other country, but not earning money or taking citizenship there, I don't know how they'd be taxed locally, but people in the position to do this could shop for countries where this would work best. By percentage of population, the numbers of people who could do this are probably pretty low, but by percentage of total income or net worth, it may be fairly high.
I heard of this before, I haven't read back the 15 preceding pages, but these are the issues I always see with this:
1). Any sales tax rate high enough to fund the operations of the entire federal government would spawn huge black markets to avoid the tax. I would see huge underground barter markets springing up.
2). People with portable sources of income could always just go expat, keep their source of domestic income, but live abroad and not consume in the US. If they're living in some other country, but not earning money or taking citizenship there, I don't know how they'd be taxed locally, but people in the position to do this could shop for countries where this would work best. By percentage of population, the numbers of people who could do this are probably pretty low, but by percentage of total income or net worth, it may be fairly high.
1) Bartering "new" products? Only new products would be subject to the tax. Why barter used stuff when you could get cash for it? I don't have anything in my possession that is "new" that I could sell or barter. As far as black markets go, if someone opens a legitimate business and sells under the table they will likely get caught eventually. The only successful secrets are the ones that are only known by one person.
2) If the economy takes off under this system, how many people will find it is better to live elsewhere?
How would a New Fair tax plan treat payments to pay off debts incurred under the Income Tax system? If not taxed, I could see how a lot of people would be getting out of debt a lot faster.
Paying a debt is not purchasing a good or service. So it wouldn't be taxed.
Having a business to reduce taxes happen with the system we have now.
IMO.....everyone should have a small business...it works....and I do not mean cheating on taxes.
The world won't work if everyone has a business. You need employees -who are usually people that want to work a job and get paid for it. They don't have the desire to operate a business.
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