What type of tax is best economicly?

[Hell Puppy]

Originally posted by RawAlex@Nov 9 2004, 12:34 AM
Hell Puppy, sales tax only just encourages people to work off the books all the time. You need to come to Quebec, where there is more than 15% sales tax - it isn't hard to find someone willing to work partially or completely in cash, it is a very normal question.

I went shopping a couple of years back with a visitor to Montreal. Go to the store, fidn what he was looking for, ask the price. $200, tax in. How much for cash? $160. How much for US cash? $110.

It all depends how you ask the question.

Thus, a sales tax as the only source of government revenue is, well, just not going to work out.

Alex

Interesting point.

There are enough positives though that I dont think you take the idea off the table just because a few people will evade it. There's no tax scheme that cant be dodged.

Anything that eliminates withholdings (a measure implemented temporarily to use to fight World War II) is a step in the right direction if for no other reason than it makes people better understand taxes and how much they pay.

It's amazing how many people have no concept of just how much they pay in taxes because it is peeled right off their payroll check. Ask 'em how much they paid in taxes last year and over half of them will respond "Nothing! I actually got some back!". The government makes sure the defaults insure you over pay...otherwise a large percentage of the country could never scrape up even $2-3K of unantcipated tax expense.