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View Full Version : What will you be bootlegging when Obama's Vat comes?




..PAUL4PRES..
04-21-2010, 09:42 PM
I think I will bootleg potatochips.

silus
04-21-2010, 09:45 PM
Condoms.

noxagol
04-21-2010, 09:45 PM
Everything I make and everything else I can. I already do this to as much an extent as possible.

aravoth
04-21-2010, 09:46 PM
smokes, booze, beef and fruit

Pauls' Revere
04-21-2010, 11:26 PM
Everything I make and everything else I can. I already do this to as much an extent as possible.

This, the black market will become the free market.

axiomata
04-21-2010, 11:28 PM
The VAT tax is very hard to bootleg around.

..PAUL4PRES..
04-21-2010, 11:45 PM
The VAT tax is very hard to bootleg around.

How so?

Eroberer
04-22-2010, 12:04 AM
I believe that nothing will happen. The VAT will come, the people will grumble, and then grudgingly pay more for their purchases. I currently live in Germany and there is a 19% VAT on everything except food and books, which have a 7% tax. I think I am the only one here who complains, but to no avail.

We haven't actually been very successful in stopping anything the government wants to force on us, such as Obamacare, so why would a VAT be any different?

With all of that said, I hope it fails.

noxagol
04-22-2010, 12:18 AM
I believe that nothing will happen. The VAT will come, the people will grumble, and then grudgingly pay more for their purchases. I currently live in Germany and there is a 19% VAT on everything except food and books, which have a 7% tax. I think I am the only one here who complains, but to no avail.

We haven't actually been very successful in stopping anything the government wants to force on us, such as Obamacare, so why would a VAT be any different?

With all of that said, I hope it fails.

If you oppose a VAT making everything more expensive and your life harder, then you're racist!!!!

Danke
04-22-2010, 12:24 AM
Penis pumps.

Adrian.Bisson
04-22-2010, 01:38 AM
The VAT tax is very hard to bootleg around.

We'll find a way. Go go counter-economics!

cindy25
04-22-2010, 01:52 AM
most of the sheeple will pay; they want their precious receipts, and to use their credit cards.

today, how many people even think of paying cash/no receipt for car repairs?

axiomata
04-22-2010, 02:53 AM
How so?

Compared to a regular sales tax, which is paid entirely at the point of sale, VAT taxes are paid on the value added a every stage of production.

Take for example a comparison of a 10% sales tax and an equivalent VAT tax. For the sales tax final consers have a great incentive to buy online, across state lines, or through a black market because they can save 10%.

For the VAT, say you are buying a car. The end consumer may only see a tax of 2%. The other 8% has already been paid on raw materials and components. Since it is only 2% each party involved in the production of the cat has very little individual incentive to try and skip the tax.

Honestly the VAT is a very good tax ... In the way that the guillotine is good at executing people. It is very efficient, minimizes black market activity, and minimizes distortions to the market all the while bringing in revenue. Very dangerous if we get one without repealing the income tax and other inneficient taxes first.

MsDoodahs
04-22-2010, 08:28 AM
For the VAT, say you are buying a car. The end consumer may only see a tax of 2%. The other 8% has already been paid on raw materials and components. Since it is only 2% each party involved in the production of the cat has very little individual incentive to try and skip the tax.



So...wouldn't it be cheapest to buy a car produced in a foreign country where the VAT tax didn't add cost to the raw materials and components?

idirtify
04-22-2010, 08:50 AM
But as with any other law that is claimed to “work well in other countries”, American government will surely find a way to make it far worse. Let’s imagine how they could/would abuse a VAT. It looks like it would be exceptionally easy to extend to an extremely large number of things, taxes due whenever value increases; easily extendable into the realm of personal non-business property. IOW, we are actually talking about taxing literally EVERYTHING at any point for virtually any bureaucrat’s reasoning. Take old things that would normally have been considered junk. Now they are suddenly appreciating in value as antiques do – according to those who profit from taxing them. IOW, if I understand VAT correctly, the taxes can be assessed & due at any arbitrary point previous to sale/purchase.

Bruno
04-22-2010, 08:52 AM
why all the complaining? We should all be patriotic and pay more taxes. :rolleyes: