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Doesn't a sane Sales Tax approach deal with the first issue? If I buy Lumber with a Sales Tax of $X and Sell Furniture with a higher sales tax of $Y, then I se
by whatusername 14y ago
Doesn't a sane Sales Tax approach deal with the first issue?
If I buy Lumber with a Sales Tax of $X and Sell Furniture with a higher sales tax of $Y, then I send the $Y-X in Sales Tax to the Government. (At least -- that's essentially how the GST works in Australia).
BigCoRetail has better accountants and can deal with the processing more -- but the ultimate tax collected is the same.
- cperciva 14y agoYes, that's the difference between a Sales Tax and a Value Added Tax. The Australian GST (and the Canadian GST, but unlike most Canadian provincial sales taxes) is a VAT. It doesn't solve the "not profitable to hire someone to produce stuff" problem unless you count employee wages as inputs though.