The_Texas_Libertarian
TXMichael
Jr. Member
Posts: 825
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« Reply #1 on: October 16, 2011, 10:18:50 AM » |
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How does this plan keep track of the "new v. used goods"? It must take a fairly big bureaucracy to watch over something like that. What if stores literally decide to open everything before selling it? Wal-Mart and Target have most of their electronics behind glass or in a locked counter. So nothing would stop them from removing the shrink wrap, taking the product out for a few seconds, placing it back and the selling it as used. Thereby eliminating the 9% national sales tax on it?
Places like Best Buy could simply sell the floor model of whatever product, then open a new one to replace the floor model. Another hypothetical work-around.
Also this could significantly slow down new car sales. Why spent that additional tax money on a new vehicle when used vehicles are just fine? Also, could an auto-dealer simply work around the new sales tax by saying test drives have made the vehicle "used" because it has more miles on it than 0? If so then it wouldn't hurt the auto industry, but it would be another potential way to avoid paying taxes.
This plan has a lot of holes in it. Although the good news for the conservatives is that there is no such thing as used medicine, food and gasoline, that way the new national sales tax can still affect the people with lower incomes disproportionately more than those with higher incomes.
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