[extropy-chat] Income Tax

[MB]

On Fri, 29 Jul 2005, Rafal Smigrodzki wrote:

>
> The sales tax is however not the end of the way for tax reform - think
> about the following tax: a tax on any financial transaction
> whatsoever, any transfer of ownership, the "universal transaction
> tax". This would be even less likely to distort the economy than a
> sales tax but  it's too late to write about it today.
>


Is this some version of the VAT (of which I have seldom heard anything
positive)? A bigger and  more intrusive one? And who is to set a
Value?

If I give a birthday gift to my son, I must pay a transfer tax on
it... in addition to the tax I pay when I buy it? Or if I give him
money which I have earned, I must pay a tax on that?  If his
grandmother knits him a sweater and gives it to him, there's a tax on
that? Beyond the tax she pays for the yarn and knitting needles? ...
etc.

Please elaborate. :)

Regards,
MB