MaggieD
DP Veteran
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Happy to oblige Maggie - but just because its you. :2party:
I get paid and pay tax on that money - all of my salary is taxed. So I take $100 dollars of it - write HAYMARKET on it and go to the store with it. I buy something for $100 and hand my bill with my name on it to the cashier who charges me 6% tax on that purchase. My $100 dollar bill - of which I was already taxed in income tax from my salary - is now subject to another tax. It is taxed twice.
So the cashier turns it over to the store. Later, a supplier who insists on being paid in cash, makes a delivery and part of his payment is my $100 bill. He signs a receipt and acknowledges that he is responsible for his own taxes on the money. So he pays tax on my $100 bill also. He goes to the gas station and fills up his truck and the cost is $100.00 which he pays for with my bill with my name on it. Some 15 to 20% of what he paid for is tax.
The gas station owner takes the bill and pays a snow plow driver the next day to plow out the station after five inches of snow. He pays income tax on his income of the $100 bill.
And on and on and on it goes.
These are completely different types of transactions. If you carry your example to it's natural conclusion, the government ends up getting 99.999999% of every dollar. And that's not true. In addition, in your examples using sales tax, completely different animal. Completely different animal.
We'll have to agree to disagree on this one, Haymarket.
(You always make me smile.)
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