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Does the tax apply when money moves from one entity I control to another entity I control? If so, that's clearly a problem. If not, that's definitely a differ
by pwinnski 5y ago
Does the tax apply when money moves from one entity I control to another entity I control?
If so, that's clearly a problem.
If not, that's definitely a different set of problems.
Everything seems simple at first, and then it isn't. Every change in taxation rewards some behaviors and punishes others. Either your proposal would result in more tax revenue or less, either of which is a problem for someone, Maybe many someones.
The most obvious issue with the tax structure you describe--aside from who controls which entities--is that it is one of the most regressive tax policies I can imagine. Those at or near the poverty line would now be paying a percentage of everything they earn, while those earning far more would be paying that percentage on only a small subset of their earnings. Considered another way, while this seems mathematically equal, it's most burdensome on those with the least ability to afford it.