On Fri, 07 Sep 2007 22:23:20 -0500, flipper wrote:
On Fri, 07 Sep 2007 22:54:07 GMT, Richard The Dreaded Libertarian
On Fri, 07 Sep 2007 17:23:00 -0400, Spehro Pefhany wrote:

There's nothing wrong with a relatively small tax on services, however
it's the easiest one to cheat on if you're dealing with end consumers
who don't get exemptions. Things like home renovations.

But part of the whole point is that there would be NO tax on labor,
only tangible goods, and then (for the poor people) not on basic
necessities.

The contractor gets paid, and you buy the materials and pay the
sales tax. Then the contractor pays taxes when he goes and buys
a new truck. ;-)

I don't understand your underlying principle. I mean, why is it that
the contractor, who's 'making' (building) a tool shed, doesn't get
taxed on his labor but the person who is 'making' 2x4s does? Or nails,
or his nail gun, or the truck he hauls the stuff to site with?

Because then it's just another income tax, which the rich will evade
just as they always have, so it accomplishes nothing.

When the contractor _spends_ his earnings, he pays his "fair" share.
Same with the guy who makes the nails, cuts the lumber, etc. Remember,
the lumberyard guy buys the trees from the forester, and pays sales
tax on the tangible goods - the wood. Then, the sawmill guy, having
paid the tax on the tree, turns it into something more valuable, i.e.,
2x4's. He sells these at a profit, which profit covers the cost of
his purchases, and the guy who buys the lumber pays the tax.

It's fair all the way around. Why do people have such a mental block
against seeing that?

Other than the fact, of course, that there should be no taxation at
all, because taxes are nothing but theft perpetrated by the ruling
class.

Hope This Helps!
Rich