crocodile wrote on Jul 6
th, 2020 at 8:57am:
Bam wrote on Jul 5
th, 2020 at 9:36pm:
crocodile wrote on Jul 3
rd, 2020 at 8:49pm:
Bobby. wrote on Jul 3
rd, 2020 at 7:53pm:
crocodile wrote on Jul 3
rd, 2020 at 7:28pm:
Don't worry, the idea is as dumb as dogshit and will never happen.
Which idea?
Turnover tax.
"
Dumb idea" without explanation = croc doesn't like it but has no actual reason for doing so.
The real dumb idea: cutting taxes for the rich without funding it, then whining about the inevitable resulting budget deficit and then jacking taxes up for everyone else. That is typical neoliberal rubbish and why neoliberalism must die.
Not quite. It has been explained to you thoroughly countless times over the years but obviously hasn't quite sunk in.
Firstly, they're not a new form of tax and are known as cascading taxes whereby the tax is applied on the total value at each and every point along the supply chain from primary producer to consumer. For large organisations like Woolies, Bunnings, Rio Tinto etc, the solution is a simple one. Vertically integrate backwards along the chain by buying up all of your suppliers so that the tax is paid only once. Smaller businesses can't do this and end up paying the tax themselves on goods that have already been taxed many times. When they can no longer compete, they go out of business and government revenue dries up.
This is precisely what happened in Europe around a century ago when these taxes were popular and then replaced with the VAT we see today.
What other bright ideas do you have for us chew on.
I see you've posted much speculative mumbling without any actual basis in fact. Your one response to everything is "cut business taxes". Sooner or later you'll understand that at some point business tax reform would require some businesses to pay
more tax, not less - the businesses that currently avoid or evade taxes. Why should businesses be exempt from broadening the tax base?
Why are you whining so loudly about "cascading effects" of a tax that would be on the order of 1% of a company's earnings? If implemented properly, a turnover tax would reduce the total tax burden for most companies (including compliance costs) without reducing government revenue: it would be a part of a package where other business taxes would be scrapped (eg: payroll tax), or reduced. If all businesses paid taxes (through a broader business tax base) instead of most of them, the profitable businesses would pay less.
If such a small tax forces companies to "go out of business" despite other taxes being removed, those companies are already doomed to fail.
Got any more specious mumbling?