Will the income tax be vanquished?

[zidane1strife]

http://www.futureofmoneysummit.com/collapse-of-income-tax.php

What do ye think?

PS apologies if previously posted

 

[DemoCoder]

It's just a restatement of cryptoanarchy. The problem with the theory is, unless the majority of your commerce is done through a black or gray market, it is still trackable by the government, and has gotten more and more trackable as technology advances.

Credit card companies and banks are not likely to offer truly "untracable" accounts to consumers anytime soon, especially with the war on terrorism going on.

Large employers are highly centralized and there are a finite number of payroll companies, so income tax can be extracted at those choke points by the gubmint before it reaches your wallet.

Untracable cash is more likely going to be used to avoid sales taxes.

 

[zidane1strife]

yeah, but what about the other stuff? eh, that's just one of the scenarios presented...

 

[RussSchultz]

Um, how will the government provide for all those delicious social services if they don't take their pound of flesh?

 

[epicstruggle]

I would love to see the eventual downfall of the income tax. However 10 years is a very short time to get rid of it. Might take alot longer.

I would rather see the govermnent be funded by a sales tax system. Those who currently avoid paying any income taxe would finally pay their fair share.

later,
epic

 

[pax]

Those who avoid income tax would not likely have a hard time avoiding paying sales taxes either. One of my cousin is moving to Switzerland to avoid taxes for a 5-10 year period after which he'll come back (so he says). One uncle is in Ireland for same. If you can afford an overseas income tax haven you can avoid sales taxes. In Canada at 15% the sales tax is very much easily avoided when paying 'under the table' for many services.

Its nearly impossible for financial institutions who rely completely on trust to help out to avoid paying taxes. If you are hidden from gubmint (hmm fresh!) you are hidden from the law. No major western world financial will dare screw with their reputation like that. The financial transactions network is also the most centralized and secure network on the planet. An ideal system to tap into alternative taxation systems.

Im for the financial transactions tax to replace both sales and income. It would be small in terms of percentage (likely much lower than 1% per transaction...). It would be easily collected and managed by an already existing system and would cut drastically on costs of collecting vs other forms of taxes. Sales being by far the most onerous.