Subject: My Tax Suggestions Comment: 10 Reasons -- Flat Tax Not Value Added Tax (FLAT not VAT) 1. 23% rise in prices will scare people away from purchases and cause economic problems or drive purchases underground 2. 23% additional money in a retailer’s hands could cause them to hide sales and VAT 3. You cannot change accounting methods mid-stream. My 401k will be taxed at 23% instead of 30%, which is great. But my saving, which has already been taxed, will be taxed another 23%, this is not good. 4. Retailers will now need to deal with the IRS for sales tax. Corporate America already has a tax structure in place. This will cause retailers to establish a new structure of collecting tax to pay the government. I don’t think they will give you the money. Look how hard states have in collecting sales tax. 5. VAT allows government to have different rates for different products, therefore eliminating a true VAT and adding to the bureaucracy administrating the VAT 6. Low income people will be required to keep a large amount of paperwork to keep track of what they spent in order to get the VAT back. 7. All people will be required to keep track of personal items they pay tax on in order to collect a rebate. The rebate structure also creates more bureaucracy. 8. Retired will pay VAT on everything, because all they do is spend money. So, now we “are” taxed until we die. 9. Companies will not give employees raises for a few years since they will be paying them full salaries. They will conveniently forget employees are being taxed somewhere else. 10. Getting a reduction in tax (Flat Tax) sells much better than an increase in goods (VAT). Sincerely Clifford M. Newlands 2 Borden Rd Middletown NJ 07748 732-615-9529 |