Thoughts on Taxation. Sales Tax vs. VAT, vs Income Tax

Thoughts on Taxation.

November 9, 2012 at 7:19am

Additions to a few Thoughts on Taxation
January 18^th, 2015

On the design of a Tax system, it should not be the aim to use it to encouragement of, or the discouraging actions of the citizen. It also, should not be used as some form of social tool for redistribution of Wealth. It sole aim should be,to generate the necessary income, to allow the State to function and to accomplish it required duty’s, and only it required duty’s, nothing more, with as little distress on to the Citizen as possible and in as fair a distribution of that liability as possible and in a efficient manner.

We should align the Interest of the State to those of the Citizen, that is, have it benefit by its frugal actions, and wisely straying on task, by limiting it ability to raise tax’s. In this way, the Way the Government gains more revenune is by operating in a frugal manner, and its Income increases, but the Inpovment in the Standard of Living of the Citizens and the Incresses prosperity.

In short, Like the rest of us, have the Government feel the pain of a poor economy,and the  rewards of a good economy. Itthen becomes to the Interest of the Adminstration, to take actions which benefit the economy, and refrain form actions witch retard the economy.

“I favor the policy of economy, not because I wish to save money, but because I wish to save people. The men and women ofthis country who toil are the ones who bear the cost of the Government. Every dollar that we carelessly waste means that their life will be so much the more meager. Every dollar that we prudently save means that theirl ife will be somuch the more abundant. Economy is idealism in its most practical form.” --President Calvin Coolidge

“A government which lays taxes on the people not required by the urgent public necessity and sound public policy is not a protector of liberty. But an instrument of tyranny. It condemns the citizen to servitude.” -President Calvin Coolidge

“I go on the principle that a public debt is a public curse.” – President James Madison.

“Every dollar released from taxation that is spared or invested will create a new job and a new salary.”-President John F.Kennedy



November09, 2012

Thoughts on Taxation.
(a Recent question has been posed about if we as a nation should consider a VAT ( Value Added Tax) It is like a Sales Tax, but is applied to the value added at every stage of bring a item to Market. No miss use of Resale Licenses there for, or total loss oat a point of Final Sales )

There are some basic concepts, which should be followed in designing any Tax system.

1. One of which is Transparency, that is the one paying the tax, should be able to see what it is, in total. A Sales Tax is Great for this, a VAT is not, in that it place on  inside the process of bring a Item to Market.
2. A Income Tax, especially with with holdings , is not Transparent , in that the Citizens really dose not see it in total. ( We really should have Tax payers have to write a Check to the IRS for the total amount with no With holdings, So that the Tax payer know what the total amount is they are paying.)

I would their by prefer a Sales Tax to a VAT.
Yes, a VAT is much harder to escape, witch is a good thing in the design of a tax.

2. A Sales Tax and a Vat are by there nature, more fair than a Income tax. A Income tax needs Deductions and exemptions, because of the way it naturally punishes Thrift , Savings and Investment. Where as With a Income Tax is a tax on all income, a Sales tax or Vat, Taxes are only collected when spent, and Investments , Thrift and Savings are handled only by accessing the “Fruits” of such endeavors are utilized.

Seconded Question, Constitutional, not just Legal, but in ailment to Principles.
On this Question, ANY FORM of direct Taxation, be it a Income tax, a National Sales Tax or a VAT, placed upon the Citizens by the Federal Government is wrong and contrary to the Principles this Country was founded on.

Instead, A Amount, determined by the Federal Government, be it as a percentage of GDP, or as a Percentage of the Population, which is determine to be sufficient to cover the operation expenses of the Federal Government to preform it duty’s, but should not be design to generate excessive amounts , nor be used for activity’s out side it area of responsibility, ( Our Government has a responsibility to conduct it Activity’s in a Frugal and efficient manure) as the allocated responsibility of each State, who then in turn have the responsibility to Gather it, by which ever means it see’s as Fair with in it borders.

Moving to any Flat Tax, any Vat by the Federal Government needs to be tied to the Elimination of Income Tax completely and it mechanism of application, i.e. the IRS needs to be Eliminated. A Sales Tax or VAT can be carried out by the State. Principles, you do not Tax both Fore and Aft at the same time.

Curtis.

"To take from one because it is thought that his own industry and that of his father’s has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association -- the guarantee to every one of a free exercise of his industry and the fruits acquired by it." - Thomas Jefferson —