Yes and NO.
Right now if ford buys $3,000 worth of stuff to make a $20,000 car they do not pay taxes on it as it is not a finished good and the tax comes as it is sold to an end user. Now they would pay $3,300 for the parts and the cost of the tax would be added into the to cost of the car so now a 20,300 car that would then have a 2,030 more tax on it. So what we are now producing and selling for 20,000 will end up costing the end user $22,330 and the added costs will change the demand curve for that good. Then add to that any state sales tax and the 20,000 car / truck can easily get to 23,904 with the 7.75% sales tax here in CA. Now does the dealer have to pay the 10% when He buys the car and then you have to pay another 10% when you do? The Dealer is going to pass his 10% on to you and we now have a 25,000+ car/ truck that was 20,000 before the national sales tax.
With more than 50% of the population NOT paying any federal tax this would either lead to a ressession or deepen any we are currenty in.
What we need to do is get Government out of our lives completely. Yes we need to pay taxes to have government do what is called out for in the Constitution but it should be a flat rate not a variable rate based on how you spend your money or if you live this way you pay less than others.
We also need to look at all the taxes and fees we pay and what the cost to the economy is over what the lack of that tax would produce.
Did you know there is a tax on your phone bill for only a few cents a month to repay the cost of the Spanish American War in 1898. the Government collects more each year than the cost of the whole war. The Battleship Maine included.
I know what you may be thinking.
Since then we had Mexico in 1916, WW1, Russia, WW2, Korea, Viet Nam, Dominica in 65, Lybia, Panama, Gulf War, Kosovo, Gulf war, Afganistan, Iraq, and the war on Terror that his must go to fund or pay down. NOPE!
Just goes into the general fund.
With the new Census we should look to see what is the mean house hold income for Single, Single with Kids, and Married with kids and change the Tax laws. by Lowering the taxes we will lower costs of Products. Inturn raising the demand for goods, Getting people back to work that would then raise the wage as labor becomes scarce, and as wages rise so do tax revinues.
But The people that are power hungry do not want a well run society as then you will not need them. There will not be a scape goat, poor eductaion helps this and they are doing their best to keep the population un educated on Economics.
Yes Taxes are needed but every dollar collected is less money in the economy and the Government destroys wealth and has never created any.
