Essay about Fair Tax Avoidance of Taxes - 1696 Words

PA 8720 - â€Å"Fair Tax† Policy Analysis John Maynard Keynes stated that â€Å"the avoidance of taxes is the only intellectual pursuit that carries any reward,† (Waters, 2011). In Missouri, while seeking to avoid an income tax, advocates for the â€Å"Fair Tax† have seemingly presented a proposal that is the antithesis of the pursuit Keynes deems worthy. They are proposing a constitutional amendment that would impose a sales tax that no Missourian could avoid. The â€Å"Fair Tax† would cost everyone, no matter their income level and even have its greatest impact on the most vulnerable among us. Even as a tax of this type would expand the tax base, the repercussions to the taxpayers, the state budget, and the state economy would present hurdles too high to†¦show more content†¦The initiative petition however, caps the state sales tax at seven percent (Constitutional amendment to, 2012); leaving no mechanism for recovering such a substantial loss in revenue. James Moody, a former budget director, called the proposal â€Å"fiscally untenable,† stating that it would â€Å"either bankrupt the state, or in the alternative, bankrupt the poor and working lower and middle income classes.† (Moody, 2011). This dilemma is furthered when exemptions are taken into account. Just as Irene Rubin noted in The Politics of Public Budgeting (2010), â€Å"as the burden on a group increases, the demand for exceptions for that group is likely to increase.† Moody applies this notion to the â€Å"Fair Tax† when stating that â€Å"the simple math is that exemptions from taxation lower the taxable base,† and that â€Å"the more tax exemptions assumed, the lower the tax base, and the higher the tax rate has to be,† (2011). In a Columbia Daily Tribune editorial, Henry Waters stated â€Å"the new sales tax would instantly become riddled with exemptions,† and that â€Å"for every exemption, the rate must go up,† (2011). Under the proposal, cities and counties would have the ability to levy an additional sales tax on top of the tax imposed by the state, but the total is not to exceed ten percent. If current local rates stood, those shopping in St. Louis city would need to pay up to 11.275 percent on most purchases, with those in St. Louis County paying up toShow MoreRelatedA Tax Avoidance Case Study Essay1340 Words   |  6 PagesThe idea that morally dubious goals may be legitimate inside capitalism will be discussed in light of a tax avoidance case study. Apple, a multinational technology company, has avoided paying its fair amount of income tax for years. This paper will consider the structural embeddedness of Apple’s legitimised goal—the maximisation of profit—through the ‘Double Irish Dutch sandwich’ tax haven model. 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