NYCPHP Meetup

[sbeam]

On Thursday 14 August 2008 07:18, David Krings wrote:
> CT?? I moved from CT to NY and stuff is way cheaper here. Gas is cheaper,
> food is cheaper, and especially beer is cheaper...and sold on sundays...and
> sold in pharmacies (very convenient when picking up the liver pills). 

May be cheaper at retail, but in fact the state with the highest net 
state/local tax burden is NJ, followed closely by NY and then CT. So with 
those neighbors, there may not be a lot of dis-incentive in the "Amazon tax", 
but it is one more straw.

http://www.taxfoundation.org/taxdata/show/335.html

That's why a messy union of loosely federated states is preferable to a single 
central government. State competition is sometimes bad for the environment 
etc., but it has its benefits. If there was your 10% national sales tax 
(which would, at least, be Constitutional, as opposed to the federal income 
tax), we would have no choice but to sit and watch while 10 turned to 10.5, 
then 11....  they might slow down around 30, which is what the total tax 
share is now. Government tends to expand its monopoly just as any large 
corporation does, through whatever means available to it. 


> Just 
> look at the sales taxes charged in the EU. The lower end is around 18%.
> Income taxes are higher in Europe as well. But in exchange they got streets
> rather than a series of potholes and people have health insurance. You get
> what you pay for and sometimes less.

Higher taxes do not correlate to better living standards, but free commerce 
and rule of law do.

Actually the EU is a similar entity to the one created in 1787 in 
Philadelphia, designed only to regulate currency and commerce and ensure a 
base level of human rights, but with an even weaker central government and no 
common defense (so far). Tax collection, healthcare and potholes are still 
administered by the member states. So we will see how it plays out long term, 
since it seems Europeans are not getting much for their money except a 
gigantic bureaucracy. It is standardization and freedom from tariffs that is 
creating benefit.

And to come back around, the EU is very eager to get a piece of internet 
commerce as well, and does in the case of any large corp in its jurisdiction. 
If you sell a digital download to someone there you are supposed to collect 
VAT and mail a check to Brussels.

http://www.wired.com/science/discoveries/news/2003/06/59167