Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next
Author: Nathar Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 80  
Subject: Re: National Sales Tax Question Date: 6/6/2001 11:18 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
The confusion in implementing a sales tax is deciding what the final "sale" is. In a value added tax, as you mentioned, every step of the process is taxed. In some ways, this is actually simpler. For an end use tax, it's a little more complicated to determine what the end use of a product is. If you buy corks to stick in bottle for $1.00, you'd have to pay 25 cents in sales tax. If I buy corks to make fishing lures which I sell, I wouldn't have to pay the 25 cents sales tax. The huge temptation, then, is that if I want a cork to stick in a bottle I say that I'm using it to make a fishing lure instead, saving me 25 cents. Doesn't seem like a big deal, but think about how much a computer costs. If you're buying a computer for your business it would cost $500 less than if you were buying it for your personal use.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (12) | Ignore Thread Prev | Next


Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Macro Economics

Looking at Currency Ratios
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.