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Originally posted by Asher
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All of the income eventually gets spent. If it never gets spent, then this is equivalent to $x of charity work where x is the amount just flushed down the toilet. At the very least, the money sits there in the bank and increases the availability of credit.If there is no sound in space, how come you can hear the lasers?
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Asher
That is a misleading concept and ignores the fact that people's incomes are not flat through their lives.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
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No. Are people paying VAT on investments?Originally posted by Hauldren Collider View Post"The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
Ben Kenobi: "That means I'm doing something right. "Comment
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Investment is deferred consumption.12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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When they withdraw from them and spend the saved money, they are. If they never withdraw, consider that the company they loaned to pays the tax when they spend the money.Originally posted by Asher View Post
KH could you clarify for me whether VATs are regressive, progressive, or neutral and why? thanks.If there is no sound in space, how come you can hear the lasers?
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But the investment increases in value (typically). They're earning extra money by deferring the consumption, capitalizing on it if you will...Originally posted by KrazyHorse View Post
BTW, how much of Bill Gates' tens of billions of dollars of investment do you figure go to US sales tax?"The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
Ben Kenobi: "That means I'm doing something right. "Comment
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Why are you assuming they spend the money in a country where VAT applies?Originally posted by Hauldren Collider View Post
They're getting extra benefit out of the delayed payment to VAT -- a benefit the poor do not have, since they've no means to invest or save. They must pay the VAT now, always.
No matter how you look at it, poor people will at MOST be able to pay the exact same proportion of VAT as rich people, but realistically they'll always have a higher burden."The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
Ben Kenobi: "That means I'm doing something right. "Comment
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The US doesn't have a sales tax. States have sales taxes.
If there is no sound in space, how come you can hear the lasers?
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I'm referring to sales taxes in the US as an aggregate.Originally posted by Hauldren Collider View PostThe US doesn't have a sales tax. States have sales taxes.
"The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
Ben Kenobi: "That means I'm doing something right. "Comment
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The other thing to remember is that the tax burden on various interest groups is only tangentially related to their marginal tax rates...
For example, it's not obvious that a tax on capital gains falls disproportionately on investors...12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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The other thing to remember is that the tax burden on various interest groups is only tangentially related to their marginal tax rates...
For example, it's not obvious that a tax on capital gains falls disproportionately on investors...12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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Tariffs?Originally posted by Asher View Post
They're getting extra benefit out of the delayed payment to VAT -- a benefit the poor do not have, since they've no means to invest or save. They must pay the VAT now, always.
Poor people can't use banks? Really? And how does delaying payment benefit you?
I'm still not getting how the burden is any different. Assuming all the money gets spent, and we have tariffs, everyone pays the same percent WHEN they decide to consume rather than before.No matter how you look at it, poor people will at MOST be able to pay the exact same proportion of VAT as rich people, but realistically they'll always have a higher burden.If there is no sound in space, how come you can hear the lasers?
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Originally posted by Hauldren Collider View Post
VAT as it is known in Britain was introduced as a progressive tax- a tax on luxuries. By extending it to nearly all sales goods its end results became regressive- anyone living hand to mouth gets shafted, while the old money who can lock estate up for generations can simply wait for a more favourable tax regime.The genesis of the "evil Finn" concept- Evil, evil FinlandComment
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Did you even read what I wrote? That would imply the same tax rate.
A single tax bracket of say 5% is not regressive or progressive IF I understand correctly. I haven't factored in the concept that additional income could have decreasing marginal value.
Furthermore by just waiting to spend it you are sacrificing the ability to spend the money now, which is probably significant.If there is no sound in space, how come you can hear the lasers?
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And they will pay VAT on that larger amount when it gets spent. I don't understand your objection here.Originally posted by Asher View Post12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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