FairTax, doom, and net-net

Russell Turpin deafbox at hotmail.com
Thu Apr 10 18:03:22 PDT 2003


Tomwhore:
>Does this cover EVERY transaction?

If I were king, I would except transactions
between individuals involving labor or
consumer goods. My reasoning is that I don't
want to create the need to account for stuff
that currently isn't accounted.

>Where I think this would be both great, from my viewpoint, and horrible, 
>from the tax collectors veiwpoint, would be in alternative exchange 
>mediums.

Yeah, there is some nitty-gritty there. You
didn't name the obvious biggie: stock options
in companies that aren't yet public. But
really, I don't think it would be that much
of a problem. (a) In the case of a fungible
intangible with current or future market
value, such as stock options, the tax is paid
in kind. An agency similar to the Resolution
Trust Corporation is created to hold and sell
such instruments at such time as they become
liquid. (b) In the case of non-tangible
items such as land swaps, either exempt such
transactions from tax, or require tax to be
paid on fair-market value.

>Even casual bartering would be a great way to decrease you federal 
>transactional spending.

Keep in mind that this is a tax that would
have a low rate, say 3% or 4%.



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