Actually, the Cap'n tried, and missed. He does not understand the FairTax, and chooses to remain ignorant. That's his problem, CBJ7. Very similar to yours. Originally Posted by CuteOldGuyBullshit!
Ranting does not make you right, Cap'n. Repeat it all you want. Doesn't change the truth. Originally Posted by CuteOldGuyAnd telling someone who obviously knows vastly more about this issue than you do to "go learn something" doesn't change the truth either, does it?
I've asked fairtax.org and COG in an earlier post to answer one question and neither can answer, but i'll try again.There's no easy answer.
How will the government enforce and collect taxes of sales from other countries? Originally Posted by nwarounder
There's no easy answer.I'd like to have anything practical that abolishes the IRS, but Faitax.org has been at this for what, 10 or 15 years now (?). Very good points and again, nothing wrong with the idea, but I just don't think that particular organization has the brains to figure it out. I mean we can discuss it and come up with possible solutions, but they cant after so many years and their solution is "They don't think it will happen"? I think they are in it for the money only, seriously I wouldn't donate. And by no means should we ever fall for the "well, let's pass it first and find out what's in it later".
In the event that any type of national sales tax is ever implemented, whether a VAT or anything else, all this would obviously have to be specifically addressed when the "rules" were drawn. As you note, the potential for tax avoidance is obviously rather substantial. In fact, one of the many criticisms of the FairTax is that evasion rates would be unknown, but possibly very high.
One way to handle the issue of goods bought from foreign sellers might be a modified form of import duties with rates equal or comparable to the domestic consumption tax. Needless to say, that could cause complications and potentially disincentivize various forms of commerce. And in many instances, it would be difficult to enforce. Originally Posted by CaptainMidnight
nwa, are you talking about sales of products to other countries by American manufacturers? If you are talking about exports, there would be no tax on that item if purchased in another country.All good, but no. I'm talking about the sales of goods to American consumers from other countries. For example, just got contacts in today from Canada, 500 bucks, zero sales tax. If you put a 25% tax on everything consumers purchase, you could buy almost everything from another country cheaper than here, and people would.
Now think about it. If Boeing, GM, Ford, what have you, could sell American made products overseas at a price 25% less than they now charge, what would happen to their sales? And what would happen to manufacturing in the US? And what would that mean to the economy?
Sorry, nwa, if I missed your question. I didn't avoid it. There's your answer. Originally Posted by CuteOldGuy