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> We don't tax people on the FMV of gold when they dig it out of the ground. Why shouldn't we? We tax people on the FMV of something valuable created out of th
by vkou 3y ago
> We don't tax people on the FMV of gold when they dig it out of the ground.
Why shouldn't we? We tax people on the FMV of something valuable created out of thin air, why should gold be an exception?
- lottin 3y agoIt isn't exempt. The miner will have to pay VAT when they try to sell the gold.
- paulddraper 3y ago> We tax people on the FMV of something valuable created out of thin air, There are income taxes which apply when goods or services are sold. There are sales taxes when goods are purchased. There are property taxes when goods are owned. Nothing gets taxed on creation.
- revbed 3y agoAnd there are excise taxes when goods are created.
- paulddraper 3y agoExcise taxes are a product-specific sales tax. For example, on gasoline. The tax occurs at the pump, not at the refinery.
- revbed 3y agoNo, that's exactly wrong https://en.wikipedia.org/wiki/Excise https://en.wikipedia.org/wiki/Excise. "An excise, or excise tax, is any duty on manufactured goods that is normally levied at the moment of manufacture for internal consumption rather than at sale." I'm very familiar with how the excise tax on alcohol works, it's definitely a tax on creation not consumption.