January 2011

The consumption tax is funding the form of a free society - or rip-off disguised neo-liberal model?

The consumption tax in the Focus made the charge against her objections.

A handout for Katja Kipping, Ronald Blaschke, Werner Raetz including
or: a red carpet for the left J

Ralph Boes is the complete text in PDF format here>>

Part 1:
explanation of what is consumption tax.

all be on labor income taxes and social security contributions, rather than the work on the consumption, as is already the "VAT" down. So instead of a larger number of "direct" (levied on labor income and operating profits) and would be "indirect" (levied on consumption) taxes and social contributions it has only one release to the community: the value-added or Consumption tax. Income from work would be exempt, so-called "non-wage costs and operating taxes fell away.

would have to be as settled, the entire state budget and all publicly funded social services then the remaining value-added or consumption tax, this would then be raised so that all losses are compensated on the other side.

example

The production of consumer goods in Germany today, for example cost 100 euros.

the sale are 19% VAT on the (net) Price established (Fig. 1).

Black: Product price (net price)

Gray:

VAT

in product price are still a lot of hidden taxes and other Social security included.

case of pure consumption tax and all taxes are only levied on the consumption of VAT.

in production are up to that but already accrued a wealth of taxes and social spending (payroll tax, social security, health insurance, business taxes ...). These were one and all calculated in the product price, so that this "bloated" of taxes and social contributions is (Fig. 2).

fall in reality today every time you purchase an average of 50% taxes and social contributions to.
[s. "State share", note 1]

in the product price disguised tax and social security omitted in the pure consumption taxation and, as now applied VAT only when purchasing, or in consumption. (Fig. 3)

The consequences

national income and prices: provide

To the national income as today, would the tax rate in the total price about 50%. Or, on the product price would need 100% value-added and consumption taxes are hitched. Since the product price drops accordingly, changes the final price products not ! (Figure 3)

impact on the inland:

- who "does" is exempted from taxes and social contributions. First, the customer pays the taxes.

- work is cheaper to fall without the wages, because so far only accounts for a third party discharged statute.

- The business risk from falls would lower production costs. The Payroll can be simplified.

- The pressure on workers to finance the welfare system does not apply: All people pay by the amount left over from their consumption consumption tax together into a social system. The problem of "demographic" is solved.

- The government is relieved: it just needs to control the consumption or VAT - all other taxable events - and tax loopholes - fall away.

- The state monitoring income accounts for the population because it is only the consumption or VAT.

Global impact:

export:

By pure consumption tax, the buyer abroad relieved of our social costs (Figure 5 instead of Figure 4). German production will be globally competitive.

import:

4: export:

Not so ...

... but so!

import:

Not so ...

... but as ! be

the importation of currently only 19% VAT established (Fig. 6).

If they applied to the consumption tax (in-

and foreign products as treated equally), also the imported goods come to a reasonable level. The destructive dumping prices fall away.

State income:

The taxes, which account for exports to our community in a much greater extent than today (Figure 5 instead of figure 4), come from the importation in again (Fig. 7 instead Fig. 6). The initially formed by the export "tax hole" is compensated by the import again. German trade is "globalized."

Next to the objections>>

- Speech to text in video

Note 1: As "government spending" refers to the proportion of income that relates the state of the money reaches of society. With Ex: In Germany the "government rate" at 50% - ie an average of all trade, 50% of the money over to the community and 50% in the private use. - Other countries have different rates. For example, Switzerland has a government share of 40% - there go there only 40% of the community and 60% can be collected privately. In the Scandinavian countries, the government share 60%: 60% to the community and only 40% are "privatized".