Bill Gates: I don't pay enough tax

Jiro said:
There's no federal sales tax for USED car or any used products.
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This is my biggest concern with the Fair Tax. Other than this I pretty much like it.
 
Jiro said:
oh? why?
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Hard to say how it would play out. What do you think a 30% tax would do to the price of used cars? Demand for new cars? Same with houses? And electronics?
 
Jiro said:
There's no federal sales tax for USED car or any used products. Many poor/average people buy used products anyway. About IRS seizure - don't worry about it. It's relatively rare because it's too much of a hassle and wasted money for IRS. Most of seizures are done by banks.
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Frankly, I always have hated the idea of imposing a sales tax on used products. It doesn't make any sense to pay a sales tax on an used product is because the previous owner already had paid the sales tax.

So why tax the same product twice?

Used cars are cheaper to buy due to less fees and taxes. The new cars here are sold with a lot of fees and taxes included. The second you leave the car lot, your car is suddenly worth a hell lot less than what you paid for it.
 
Banjo said:
Used cars are cheaper to buy due to less fees and taxes. The new cars here are sold with a lot of fees and taxes included. The second you leave the car lot, your car is suddenly worth a hell lot less than what you paid for it.
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Sales tax is the same for new and used in TX. But yes you are right about new car value just on depreciation alone.
 
TXgolfer said:
Hard to say how it would play out. What do you think a 30% tax would do to the price of used cars? Demand for new cars? Same with houses? And electronics?
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hmmm I think this went over my head.

I don't see anything wrong with not imposing tax on used car because it makes sense. it's economical and earth-friendly in a way because it encourages people to use used products till its death since most of products in landfill are in perfect working function. it's a waste of resource.
 
Banjo said:
Frankly, I always have hated the idea of imposing a sales tax on used products. It doesn't make any sense to pay a sales tax on an used product is because the previous owner already had paid the sales tax.

So why tax the same product twice?

Used cars are cheaper to buy due to less fees and taxes. The new cars here are sold with a lot of fees and taxes included. The second you leave the car lot, your car is suddenly worth a hell lot less than what you paid for it.
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Yeah. I agree.

I've thought the same thing when it came to buying used stuff like at pawn shops and game stores. :roll:
 
Jiro said:
hmmm I think this went over my head.

I don't see anything wrong with not imposing tax on used car because it makes sense. it's economical and earth-friendly in a way because it encourages people to use used products till its death since most of products in landfill are in perfect working function. it's a waste of resource.
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Well a POSSIBLE consequence could be people keeping their stuff longer and buying used more often....which is WONDERFUL for the enviroment, I agree....but MAYBE not so good for the economy.

Such a move COULD ( :dunno: ) create a much higher demand for used products causing a loss of production jobs AND an increase the price of used goods. That is a pretty bad combo. (especially for lower incomes that buy mostly used products now)

Not to mention a decrease in consumption of new vehicles (thus a decrease in imports) due to new taxes might not be received well by foreign manufacturers. In fact it could result in a loss of exports or an increase in the cost of other imports.

Alot of "ifs" and "coulds".... I have no idea what would happen, just playing devil's advocate
 
TXgolfer said:
Well a POSSIBLE consequence could be people keeping their stuff longer and buying used more often....which is WONDERFUL for the enviroment, I agree....but MAYBE not so good for the economy.

Such a move COULD ( :dunno: ) create a much higher demand for used products causing a loss of production jobs AND an increase the price of used goods. That is a pretty bad combo. (especially for lower incomes that buy mostly used products now)

Not to mention a decrease in consumption of new vehicles (thus a decrease in imports) due to new taxes might not be received well by foreign automakers. In fact it could result in a loss of exports or an increase in the cost of other imports.

Alot of "ifs" and "coulds".... I have no idea what would happen, just playing devil's advocate
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ah.... good point :hmm:

however... of course if Fair Tax caused a shift from mass consumption of new products to used products... that would create new jobs for selling used products, refurbishing used products and moving used products around. and plus - perhaps this move may revert back to old time where products used to be more reliable and longer lasting.

I'm not really that concerned about loss of production jobs because there won't be any jobs anyway in the long run when environmental disaster will become unrepairable. How many more pristine land must be destroyed for landfills? How many more superfund sites can we tolerate?

What dies comes a new life so I'm sure there will be new kinds of jobs after a loss of production jobs. Detroit went kaput and we managed just fine.
 
the sight of this is just abysmally sad
grocery-store.jpg


I'd prefer this over mega-store and I think Fair Tax would create more mom n' pop stores... I hope
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ParisStreetScene.jpg
 
Jiro said:
ah.... good point :hmm:

however... of course if Fair Tax caused a shift from mass consumption of new products to used products... that would create new jobs for selling used products and moving used products around. and plus - perhaps this move may revert back to old time where products used to be more reliable and longer lasting.

I'm not really that concerned about loss of production jobs because there won't be any jobs anyway in the long run when environmental disaster will become unrepairable. How many more pristine land must be destroyed for landfills? How many more superfund sites can we tolerate?

What dies comes a new life so I'm sure there will be new kinds of jobs after a loss of production jobs. Detroit went kaput and we managed just fine.
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I think we would get used to the Fair Tax and it would be great long run. I think the transition to the Fair tax might be pretty painful for a few years.

And yes many jobs would transfer from production to sales and repair. The problem I see is that our system relies on growth.

And as you know....I am an environmental nut too so i see alot of good that can come from this too. :) (Note avi)
 
About Fair Tax trade:

"Puts imports and domestic goods on a level playing field. Exports are not subject to the FairTax, since they are not consumed in the U.S.; but imported goods sold in the U.S. are subject to the FairTax because these goods are consumed domestically.

This makes US goods more competitive at home and abroad. FairTax is border adjustable tax consistent with WTO criteria."

Americans For Fair Taxation: FairTax Versus Obama Tax Plan
 
TXgolfer said:
Well a POSSIBLE consequence could be people keeping their stuff longer and buying used more often....which is WONDERFUL for the enviroment, I agree....but MAYBE not so good for the economy.

Such a move COULD ( :dunno: ) create a much higher demand for used products causing a loss of production jobs AND an increase the price of used goods. That is a pretty bad combo. (especially for lower incomes that buy mostly used products now)

Not to mention a decrease in consumption of new vehicles (thus a decrease in imports) due to new taxes might not be received well by foreign manufacturers. In fact it could result in a loss of exports or an increase in the cost of other imports.

Alot of "ifs" and "coulds".... I have no idea what would happen, just playing devil's advocate
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:dunno:

I think there will always be a market for "new stuff." Enough Americans will always want the latest products to keep retailers busy.
 
Also:

"How does this affect U.S. competitiveness in foreign trade?

Because the FairTax is automatically border adjustable, the 17 percent competitive advantage, on average, of foreign producers is eliminated, immediately boosting U.S. competitiveness overseas. American companies doing business internationally are able to sell their goods at lower prices but at similar margins, and this brings jobs to America.

In addition, U.S. companies with investments or plants abroad bring home overseas profits without the penalty of paying income taxes, thus resulting in more U.S. capital investment.

And at last, imports and domestic production are on a level playing field. Exported goods are not subject to the FairTax, since they are not consumed in the U.S.; but imported goods sold in the U.S. are subject to the FairTax because these products are consumed domestically."

Americans For Fair Taxation: Frequently Asked Questions Answers
 
why haven't we switch to Fair Tax yet? let's goooooooooooooooooo!!!! :mad2:

Paying income tax is no different from paying "protection money" to thugs.
 
Jiro said:
why haven't we switch to Fair Tax yet? let's goooooooooooooooooo!!!! :mad2:

Paying income tax is no different from paying "protection money" to thugs.
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You have to elect the politician who support Fair Tax but it won't be easy.

The conservatives are very scrambled with views on tax policies, some want flat income tax, some want make Bush tax cut permanently, some want Fair Tax and some want alternative to income tax like no taxes at all, similar to Hong Kong. I haven't heard about any liberal politicians support Fair Tax.
 
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