OrionTheWolf -> RE: How fair do you want taxes? (8/9/2007 6:54:41 PM)
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If you thought of this, without reading the Fair Tax book, then you are on the right track. Buy the book, read it, verify the resources, weigh the information, then decide. You sound (read) alot more independent and individual of thought than many who claim to always do research or know everything. There are some downsides, there always will be. There will need to be some tweaking, there always will be. Some analyst sited in the book, say it could be the best thing to happen to our economy in 6 decades. Orion quote:
ORIGINAL: NeedToUseYou You know I was thinking about this tax a bit, and I'm not so sure it would be as advantageous to corporate tax reduction as first appears. Currently, corporations get to write everything off against their taxes, like fuel, dinners for soliciting clients, corporate trips, Motels, Car rentals, office supply expenses, everything pretty much. Now, I don't know but we do take advantage of that when we go somewhere for business, and eat out, motels etc... Sorta, you know taking more time than one really needs to, staying an extra day because it's getting written off, etc.... still it falls under the rules. But if all that kind of thing was not a write off. Well, you can be sure the corporations would be running those kind of things way more efficiently instead of using them as an executive perk machine. Which is what it is really. Company meeting in Las Vegas for example. Why in las Vegas, because company can give a nice trip and write it all off, that's why. So, you go to a couple hour company meeting then party time!!. It seems that kind of waste would stop or be treated for what it really is anyway, a vacation that is taxed. Anywho, that is a good thing in my book. I'm not sure how much the average corporation pays for write-offable stuff, or activities, but it seems it would be quite a lot. So, the taxes would increase on corporations in that regard. How much versus traditional taxes is unknown. But multinationals typically pay very little tax anyway, because they offshore the tax burden to favourable tax countries via accounting manipulation. So, it would seem large multinationals, would finally lose their ability to move profits in order to avoid taxation, at least they wouldn't move them from the US, maybe they'd move the profits to the US for a change.
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