Friday, January 20, 2017

When would VAT work?

PutValue Added Tax (VAT) affects consumers more than investors; however, Unrealized Capital Gains Tax would balance VAT since it affects investors, but not consumers.

Unrealized Capital Gains Tax has an advantage since companies would only need to keep a record for two years, thus, making it difficult for hackers to trace investors' money. It also puts annonymy for investors in the long run. Only IRS has long records, keeping these records safe.

The best tax system is one that is not so complicated. Why have seven tax subsystems when we only need three subsystem?
Single, Married jointly, Married separately, Head of Household, Alternate Minimum Tax, Corporate, Short Term Capital Gains, Long Term Capital Gains.

Compare to VAT, and Annual Capital Gains (Unrealized and Realized).



PS: Two Types of Capital:
Shares of Income: Capital (Tools), Labor, Investors
Growth Model: [K] Capital (Investment), [L]abor, [M]aterial (Primary Products and Tools), [T] erritory (land ownership)

Markup increase, both Capital Share of Income and Labor Share of Income has declined, only Investors Share of Income has increase.

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