Quote:
Originally Posted by kingkilburn
With the proposed percentage of sales tax the tax burden is about the same.
|
Your statement assumes homeostatic personal behaviour. Some people won't know the difference, but there will be at least a percentage that will modify their personal behaviour to reduce tax liability.
With our current income tax structure, you need to book income as reimbursed expenses as much as possible to reduce gross income. You will also want to maximise your deductions and credits as well.
With sales tax, you would want to reduce financial transactions as much as possible and resort to barter. Sales would be booked as part reimbused expenses and part income.
I haven't thought enough to decide which is better.