International Economics

By Daniel Carbaugh

Discover the proven, market-leading text that is a favorite among students of all backgrounds for its clear, concise treatment of international trade and finance theory. Now in its 16th edition, INTERNATIONAL ECONOMICS uses a wealth of contemporary examples and practical applications to vividly demonstrate the relevance of the theory you are lea

• Language: English
• Publisher: Book Vine Press
• Release date: Feb 21, 2022
• ISBN: 9781956896947

Book preview

Contents

Think About It

Introducing the Simple Tax System

Fairness and Simplicity by Eliminating Deductions

Tax Only Earned Income

Economic Growth and the Flat Tax

Arguments against a Flat Tax

The New Flat Tax

Fundamental Tax Reform Is Needed Now

Easy as One, Two, Three

Simple to Save and Invest

Transition Is Fair and Simple

A Stronger Economy

The Fair Tax

Introduced in House (2013)

Herman Cain’s 9-9-9 Tax

The National Sales Tax

Considerations

The Simple Tax System: A Proposal

About the Author

Think About It

The great state of Florida has a 6% sales tax. Many other states have sales taxes too. How did this tax come about? Just how does each state gather these funds? And to what end?

Yes, many states have a state-wide tax on goods and services. Everyone refers to this tax as a sales tax. In Florida, most everything you buy has an additional 6% added to the total purchase price. These funds are transferred to the state’s treasury on a scheduled basis.

Note: Just for chuckles, ask your local small business owner/manager how and when do they transfer the sales tax receipts to the state.

An important point to note here is that the funds are not transferred in advance of sales. So the state is not looking for these funds in advance to pay for ongoing services that the state provides to its citizens. Why is it important? Because, in contrast, the federal government requires income-tax funds from individuals to be paid in advance. A tax refund from the federal government is actually an interest-free loan payback. So if you enjoy giving your money to the government for a year without any strings attached, knock yourself out. Ignorance is bliss!

The contrast between state sales-tax system and the federal government income-tax system is startling—a real eye-opener. Let’s ask ourselves a few questions.

Do you concern yourself (worry) about repercussions from authorities if you don’t pay sales tax? I doubt if you even give it a passing thought.

Do you concern yourself (worry) about repercussions from authorities if you don’t pay your income tax? Not yes, but hell yes! You could have your wages garnished, your property seized or aliened, you could be arrested and sentenced to jail time and ordered to pay fines.