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Equality 7-2521 View Drop Down
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Direct Link To This Post Posted: September 27 2010 at 20:33
Originally posted by Dean Dean wrote:

Originally posted by thellama73 thellama73 wrote:


Wrong again. There are roughly 15% of Americans below the poverty line, and roughly the same amount earning more than $100,000 a year. Roughly 22% of Americans are in the lowest fifth or earners, and roughly 22% are in the highest fifth. No matter how you count it, that is not "oodles more." And since the highest fifth consume vastly more than the lowest fifth, they will pay the majority of taxes.

Also, I am actually using data in my analysis, instead of vague suppositions.
I think you may have misread the data (or I haveEmbarrassed) - surely 20% of Americans are in the each fifth?
 

No. Why would you think that?
"One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. "
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Direct Link To This Post Posted: September 27 2010 at 20:33
Oh come on Robert you're now going down to technicalities... Of course I understood... 

Anyway, on that front is not a bad idea. 
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Direct Link To This Post Posted: September 27 2010 at 20:43
Originally posted by thellama73 thellama73 wrote:

Originally posted by Dean Dean wrote:

If income tax is wrong because it taxes you on what you earn, isn't consumption tax in danger of taxing you on what you haven't earnt if you buy on credit? (I don't mean irresponsible credit and credit-card overspend, I mean using legitimate, budgeted loans or taking advantage of interest-free credit deals)

At which point in the manufacturing process does consumption tax begin or end? Do I pay tax on the tree from the logging company because I am going to consume the tree to make wood pulp? Do I pay tax on the wood pulp from the pulper because I am going to consume the pulp to make paper? Do I pay tax on the paper from the paper mill because I am going to consume the paper to make books? Do I pay tax on the stock of books I bought from the publisher I'm going to sell in my bookshop? If I go into a bookshop to buy a book, whose tax bill do I pay?
 
With consumption tax you need to know where in the process the production stops and the consumption begins - In the above example I could have bought the tree to make logs to burn on my log fire, I could have bought wood-pulp to make into fire bricks to burn on my fire, I could have bought paper from the paper-mill for kindling to light my wood-stove. At each stage I would be the end-user and liable to tax, the wood-pulper, paper-miller and the publisher are not the end-users so not liable to tax - the logging company would need to know the end-use of each tree so it would know whether to charge tax or not.
 
If any of those manufacturers are exempt consumption tax on the consumables they use in the manufacturing process, does that extend to all the consumables they use in managing their business? Do they pay consumption tax on the PC they run pay-roll on or the trucks they bought to transport the goods they make or the coffee they brew in the staff canteen?
 
Then what of consumption of services - do I pay tax at a laundry? do I pay tax on parts and labour to a heating "engineer" who fixes my boiler? In my book example do I pay consumption tax on the manuscript I bought from the author? Of course these particular examples are all forms of income tax - the heating technician charges me his hourly-rate for his labour (wage) - if that is taxed then his income is being taxed - for the self-employed income-tax is the same as consumption tax - just seen from a different direction.
 
 


In my view, a consumption tax should be on Final Goods. This is the same way that GDP is calculated. So if I buy steel to manufacture a car, I am not taxed on the steel, but the person who buys the car is taxed on it, since it is a final good. If that person then sells his car used, it would not be taxed. It works for GDP calculations, it would work for consumption tax!
In my long-winded way I was really asking when do goods become final goods? Under this system are all business exempt taxation? Or are they tax payers on the goods they consume and tax collectors on the goods they add value to? (Not every item a company buys goes into the end product)
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Direct Link To This Post Posted: September 27 2010 at 20:46
Originally posted by Equality 7-2521 Equality 7-2521 wrote:

Originally posted by Dean Dean wrote:

Originally posted by thellama73 thellama73 wrote:


Wrong again. There are roughly 15% of Americans below the poverty line, and roughly the same amount earning more than $100,000 a year. Roughly 22% of Americans are in the lowest fifth or earners, and roughly 22% are in the highest fifth. No matter how you count it, that is not "oodles more." And since the highest fifth consume vastly more than the lowest fifth, they will pay the majority of taxes.

Also, I am actually using data in my analysis, instead of vague suppositions.
I think you may have misread the data (or I haveEmbarrassed) - surely 20% of Americans are in the each fifth?
 

No. Why would you think that?
Because it's the top and bottom fifth of earners, not earnings. Confused

Edited by Dean - September 27 2010 at 20:47
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Direct Link To This Post Posted: September 27 2010 at 20:48
Originally posted by The T The T wrote:

Originally posted by JJLehto JJLehto wrote:

Originally posted by The T The T wrote:

Ehem... Illegal immigrants are already paying sales taxes.... What they're not paying is income taxes, but consumption taxes they are paying, for sure. Unless somebody sells them stuff under the table, too. 



Yeah, but that is what he means by a consumption tax, Teo. It's a replacement of income tax with a consumption tax.

I'll let Rob get into it with you if he likes, I've debated Rob to death with it already LOL

It just benefits the wealthy even more and hurts even the lower middle/lower classes

 *Coughs* Did I say that? Wink


Rob was saying that that would solve the illegal immigration issue, since finally illegals would also pay taxes like everybody else. What I meant is, they aren't paying income taxes, but they are already paying consumption taxes. Of course if the rates and taxes products change, they are likely to pay more... 


Wait, yeah...wasn't that exactly it? Confused
Wont put words in Robs mouth anymore but that's the point of a consumption tax. No one can escape income tax, like illegals do.
I am confused.....why the confusion?
lol
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Direct Link To This Post Posted: September 27 2010 at 20:50
Brian you're confused. I'm not for a change... LOL
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Equality 7-2521 View Drop Down
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Direct Link To This Post Posted: September 27 2010 at 20:51
Originally posted by Dean Dean wrote:

Originally posted by Equality 7-2521 Equality 7-2521 wrote:

Originally posted by Dean Dean wrote:

Originally posted by thellama73 thellama73 wrote:


Wrong again. There are roughly 15% of Americans below the poverty line, and roughly the same amount earning more than $100,000 a year. Roughly 22% of Americans are in the lowest fifth or earners, and roughly 22% are in the highest fifth. No matter how you count it, that is not "oodles more." And since the highest fifth consume vastly more than the lowest fifth, they will pay the majority of taxes.

Also, I am actually using data in my analysis, instead of vague suppositions.
I think you may have misread the data (or I haveEmbarrassed) - surely 20% of Americans are in the each fifth?
 

No. Why would you think that?
Because it's the top and bottom fifth of earners, not earnings. Confused

Sorry I didn't read his post, I was looking at the cited data.

He meant earnings from the context and the data he provided.
"One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. "
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Direct Link To This Post Posted: September 27 2010 at 21:26
Originally posted by Dean Dean wrote:

At which point in the manufacturing process does consumption tax begin or end? 
 

Doesn't VAT apply at almost every step in the process?
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Direct Link To This Post Posted: September 27 2010 at 21:44
Originally posted by Epignosis Epignosis wrote:

Originally posted by Epignosis Epignosis wrote:

No liberal has addressed my issue of the government being one massive screw up after another.

Why should the government be trusted with health care or any other facet of business after we've seen what havoc its initiatives have wreaked on the housing industry (just to name one)- what good reason is there to trust the US government?

Let me put this another way.  If you were an investor, would you continue to invest in a company that brought in 5000 billion dollars a year yet carried a massive 13.5 trillion dollar debt that grows by the day and must borrow money to pay the interest on this debt?

Would you invest in a company that ran many of its businesses as Ponzi schemes?


I have previously suggested that you emigrate if you find certain aspects of the USA so intolerable.
That way you wouldn't have to use any of their goods and services.
However, I ain't no liberal, so you still have no takers.
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Direct Link To This Post Posted: September 27 2010 at 21:52
Originally posted by ExittheLemming ExittheLemming wrote:

Originally posted by Epignosis Epignosis wrote:

Originally posted by Epignosis Epignosis wrote:

No liberal has addressed my issue of the government being one massive screw up after another.

Why should the government be trusted with health care or any other facet of business after we've seen what havoc its initiatives have wreaked on the housing industry (just to name one)- what good reason is there to trust the US government?

Let me put this another way.  If you were an investor, would you continue to invest in a company that brought in 5000 billion dollars a year yet carried a massive 13.5 trillion dollar debt that grows by the day and must borrow money to pay the interest on this debt?

Would you invest in a company that ran many of its businesses as Ponzi schemes?


I have previously suggested that you emigrate if you find certain aspects of the USA so intolerable.
That way you wouldn't have to use any of their goods and services.
However, I ain't no liberal, so you still have no takers.

I am no liberal either. I'm a free-market socialist with libertarian tendencies in the social field and communist tendencies on the arts field.... 

Actually, if we go by the historical, international definition of liberalism, (the whole laissez-faire thing), YOU are the liberal Robert. Tongue 
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Direct Link To This Post Posted: September 27 2010 at 22:15
Originally posted by ExittheLemming ExittheLemming wrote:

Originally posted by Epignosis Epignosis wrote:

Originally posted by Epignosis Epignosis wrote:

No liberal has addressed my issue of the government being one massive screw up after another.

Why should the government be trusted with health care or any other facet of business after we've seen what havoc its initiatives have wreaked on the housing industry (just to name one)- what good reason is there to trust the US government?

Let me put this another way.  If you were an investor, would you continue to invest in a company that brought in 5000 billion dollars a year yet carried a massive 13.5 trillion dollar debt that grows by the day and must borrow money to pay the interest on this debt?

Would you invest in a company that ran many of its businesses as Ponzi schemes?


I have previously suggested that you emigrate if you find certain aspects of the USA so intolerable.
That way you wouldn't have to use any of their goods and services.
However, I ain't no liberal, so you still have no takers.

To where would he go? And why should he have to leave?

If someone came into your house and forced you into submission, you wouldn't respond saying well if I don't like this I guess I can just leave my house.
"One had to be a Newton to notice that the moon is falling, when everyone sees that it doesn't fall. "
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Direct Link To This Post Posted: September 27 2010 at 22:43
Released date are often when it it impacted you but recorded dates are when it really happened...

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Direct Link To This Post Posted: September 27 2010 at 23:00
Yeah Slarti...because as we know America has totally stuck to its values of freedom and liberty and equality over its history! LOLDead
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Direct Link To This Post Posted: September 27 2010 at 23:01
Originally posted by Equality 7-2521 Equality 7-2521 wrote:

Originally posted by ExittheLemming ExittheLemming wrote:

Originally posted by Epignosis Epignosis wrote:

Originally posted by Epignosis Epignosis wrote:

No liberal has addressed my issue of the government being one massive screw up after another.

Why should the government be trusted with health care or any other facet of business after we've seen what havoc its initiatives have wreaked on the housing industry (just to name one)- what good reason is there to trust the US government?

Let me put this another way.  If you were an investor, would you continue to invest in a company that brought in 5000 billion dollars a year yet carried a massive 13.5 trillion dollar debt that grows by the day and must borrow money to pay the interest on this debt?

Would you invest in a company that ran many of its businesses as Ponzi schemes?


I have previously suggested that you emigrate if you find certain aspects of the USA so intolerable.
That way you wouldn't have to use any of their goods and services.
However, I ain't no liberal, so you still have no takers.

To where would he go? And why should he have to leave?

If someone came into your house and forced you into submission, you wouldn't respond saying well if I don't like this I guess I can just leave my house.


His destination is his choice (Somali's nice this time of year I hear and AFAIK they have no taxes - but the reality of this anarchic haven is that Rob must choose carefully which guerilla fighters he chooses to judge the least efficient - after a few beers they tend to bequeath their own property in yer head)
He does not HAVE to leave:
He is at liberty to do so to seek his happiness - although unless he renounces his US citizenship,
Uncle Sam will still attempt to 'steal' taxes from his (global) income.
Your analogy with a home owner (US citizen) being forced into submission
(emigration) by a guest/intruder (said citizen's estimation of his elected Government's effectiveness) to vacate his property must be the deluxe flagship of 'straw man' (the scarecrow)

Why is it that even a casual trawl through the internet unearths a roll-call of leading right wing libertarians who are almost exclusively american?:

Roderick Long, David Boaz, Ralph Waldo Emerson, Henry David Thoreau, Israel Kirzner, Murray Rothbard, Ayn Rand, Rose Wilder Lane, Isabel Paterson, Barrty Goldwater, Karl Hess, William F. Buckley, David Nolan, Robert Nozick, Roy Childs, Milton Friedman et al (of course the sources could be US centric)

It must have occurred to those who endorse their ideas that just maybe one of the prerequisites for such extreme ideas to proliferate and gain legitimacy is a stricken democracy where the following ailments apply:

No credible left wing representation
A duopoly of two main right oriented parties
Ineptly managed healthcare and social security provision schemes
(and the belief that withholding tax, like hiding the ball makes for better team sports)
A belief in the free market as a self regulating device that obeys fictional 'natural laws' (and to hell with the consequences if it doesn't.)

Clearly the USA does not have a monopoly on all these traits but I can't detect any such abundance of right wing libertarian ideas in the rest of the world. (Plenty of feral left wing libertarian critters yes Confused)

I have the flu so forgive my delirious prose Embarrassed



Edited by ExittheLemming - September 28 2010 at 01:35
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Direct Link To This Post Posted: September 28 2010 at 08:38
If it's a strawman, you must point out why it is so. Rob owns his property. The government is illegitimately imposing restrictions on his livelihood like a robber. Why should he vacate his house? There is no difference honestly. Such is the nature of government. An armed assailant, thief, murder with the legal authority to do anything it pleases, and the consent of a indoctrinated populace to back it up.

You do realize that Somalia is far from being a libertarian paradise? And that Rob is not libertarian?

You do realize you mentioned Barry Goldwater as a libertarian. LOL BUCKLEY? Honestly, Buckley a libertarian? He was a big government, war loving, neo-con. What are you smoking?

Most libertarians currently are American. That's true. Then again, most of the ideas of political freedom are American. So it shouldn't be surprising. However, most of the giants of Libertarian thought prior to the mid 20th century were not American. Von Mises and Bastiat are two of the most important libertarian thinkers, neither of whom is American.

It's funny that the first three conditions you mention as prerequisites, are caused by distortions of the free market by government.  So yes we Americans would probably be angry at government for causing those situations and want to change it.

The last condition you mentioned is confusing me. Are you saying that basic economic flaws are fallacious? Supply doesn't slope downward?  I understand you dislike the free market. However, you should actually understand it before you criticize it.
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Direct Link To This Post Posted: September 28 2010 at 09:16
^ I think you know I was being sarcastic re Somalia Wink and Rob's many posts in this thread would make most us believe he endorses many libertarian ideas.

Goldwater and Buckley were both described as influential to the libertarian movement from my source, but I accept you will know their credential much better than I.Smile (BTW it's the flu not the medication speaking)

I don't understand how a lack of a left wing genuine political contender is caused by government distortions of the free market (are you saying that the voters in the US are so incapable of thinking for themselves that conditioning by the duopoly makes them believe there are only 2 valid choices? - ain't there a libertarian party in the US? If Rob is so angry at the state can't he either vote for them or run for them?)

Yes you are right, and I have admitted same in this thread several times, I know squat about economicsEmbarrassed

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Direct Link To This Post Posted: September 28 2010 at 09:47
Sorry I missed that point. There's no viable left wing party here because the people simply don't want it. It's a middle-right country. People are also too apathetic to consider a third party, so any ideological change is painful.

Rob supports a lot of libertarian ideas, but so do most people. You probably support many of them when it comes to civil liberties. However, by his own admission he is no libertarian. He supports a municipal health care system and a consumption tax!
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Direct Link To This Post Posted: September 28 2010 at 09:49

Leming, you're the one calling it a duopoly (probably accurately) and then ask why? Monopolies (and near monopolies) work very hard to perpetuate themselves.

Right now the amount of money required to run a viable campaign in the U.S. is staggering. One must be part of the system of pay to play or be independently wealthy and even then VERY wealthy. Most of our so-called democracy is a show, make the people think they have choices.
 
This is by design. Those in power have alot at stake, and spend their resources to stay in power.
 
 
 
 
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Direct Link To This Post Posted: September 28 2010 at 09:55
Originally posted by Padraic Padraic wrote:

Originally posted by Dean Dean wrote:

At which point in the manufacturing process does consumption tax begin or end? 
 

Doesn't VAT apply at almost every step in the process?
It does, but a VAT registered business can claim back any VAT it pays on purchases (with a few exceptions) so only the buyer of the final goods pays and cannot claim back.
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Direct Link To This Post Posted: September 28 2010 at 10:00
Originally posted by Negoba Negoba wrote:

Leming, you're the one calling it a duopoly (probably accurately) and then ask why? Monopolies (and near monopolies) work very hard to perpetuate themselves.

Right now the amount of money required to run a viable campaign in the U.S. is staggering. One must be part of the system of pay to play or be independently wealthy and even then VERY wealthy. Most of our so-called democracy is a show, make the people think they have choices.
 
This is by design. Those in power have alot at stake, and spend their resources to stay in power.
 
 
 
 


All valid points Jay and yes, most businessmen and politicians overtly espouse competition as 'healthy' but covertly desire above all else a monopoly. What are the main reasons then for the Libertarian Party which must include amongst its members some of the wealthiest individuals in the US to bankroll any campaign, not doing better in the polls?
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