Has the economy affected you and your tractors?

[MossRoad]

...
There are attractive things about flat taxes...

I like the idea of a flat income tax. However, it has to be paid by all to be fair. No cutoff for folks earning less than X dollars.

State sales taxes are a completely different animal.... I hate 'em. I would like to see state sales taxes eliminated and replaced with state income taxes.

Property taxes.... yikes! Paying taxes on something you paid for with money you already paid taxes on just seems wrong.

This year we are supposed to get our property tax bills on time.... for the first time in 8 years! :laughing:

 

[dave1949]

I don't know if this would be called a value added tax and I'm not sure what a vat is. However giant sales tax works for me.

Cheers

My understanding of how a value added tax works is that it functions more like a capital gains tax at each stage of the economic lifetime of a product or service. It isn't just at the end consumer level the VAT is applied typically. So, be careful what you propose

Basically it could be called an income creation tax. Every step along the way that creates income is taxed. Let's say you purchased logs for $X and sold sawn lumber for $Y. $Y - $X is your gross capital gain. The VAT is collected on some portion of that gain.


Dave.

 

[FallbrookFarmer]

My understanding of how a value added tax works is that it functions more like a capital gains tax at each stage of the economic lifetime of a product or service. It isn't just at the end consumer level the VAT is applied typically. So, be careful what you propose

Basically it could be called an income creation tax. Every step along the way that creates income is taxed. Let's say you purchased logs for $X and sold sawn lumber for $Y. $Y - $X is your gross capital gain. The VAT is collected on some portion of that gain.


Dave.

Dave,
You DON"T like VAT's, What next, you're going to admit your a Republican?

 

[brin]

My understanding of how a value added tax works is that it functions more like a capital gains tax at each stage of the economic lifetime of a product or service. It isn't just at the end consumer level the VAT is applied typically. So, be careful what you propose

Basically it could be called an income creation tax. Every step along the way that creates income is taxed. Let's say you purchased logs for $X and sold sawn lumber for $Y. $Y - $X is your gross capital gain. The VAT is collected on some portion of that gain.


Dave.

Dave....You are right ..that is the way it is - every step in a products creation is taxed all the way tot he end consumer and all services are taxed as well...haircuts, tax preparer, plumber etc. Not good for creating jobs unless they are government jobs to collect the tax and imprison those who do not pay.

 

[timswi]

The problem with VAT's is that the tax is buried at each stage of production and no one except the people in that stage know what the tax is. Governments love this because they can raise it and no one will really know. They could raise it on just the raw material step, or the finished product step. How would we ever figure it out?...it's just passed on to us. Bad, bad idea.

 

[MikePA]

You get less of whatever is taxed. A perfect example is the class envy tax on boats/'luxury' yachts years ago. Killed the industry along with the 'non-wealthy' people who worked in the industry. Kind of scary for our democracy when citizens say they like the VAT but don't know what it is. :shocked:

 

[FallbrookFarmer]

The problem with VAT's is that the tax is buried at each stage of production and no one except the people in that stage know what the tax is. Governments love this because they can raise it and no one will really know. They could raise it on just the raw material step, or the finished product step. How would we ever figure it out?...it's just passed on to us. Bad, bad idea.

That's exactly why it's so popular with politicians. A stealth tax if you will. IMHO the VAT is one of the primary reasons why the US is so much more competitive than the Europeans.
The closet thing that we have to a VAT are gas taxes, being a percentage of sales price. No wonder the politicians don't seem too upset at the price at the pump, after all their share of the pie is bigger, the higher the price!

 

[dave1949]

That's exactly why it's so popular with politicians. A stealth tax if you will. IMHO the VAT is one of the primary reasons why the US is so much more competitive than the Europeans.
The closet thing that we have to a VAT are gas taxes, being a percentage of sales price. No wonder the politicians don't seem too upset at the price at the pump, after all their share of the pie is bigger, the higher the price!

I am pretty sure gasoline and diesel usage taxes are fixed on a per gallon basis, not price per gallon. The sales taxes go on price per gallon.
Dave.

 

[FallbrookFarmer]

I am pretty sure gasoline and diesel usage taxes are fixed on a per gallon basis, not price per gallon. The sales taxes go on price per gallon.
Dave.

Here in California, it is based on percentage, a tax on a tax if you will, I always thought that was illegal, but I am learning as I get older, please pass me the recreational marijuana, I think I need it

 

[brin]

" please pass me the recreational marijuana, I think I need it " > Be patient ...looks like it will soon be legal in your state...hey you'll have a real cash crop...LOL