Quote:
Originally Posted by giver99
The rich would actually pay this tax. Every transaction, every stock trade, every purchase, the more you play, the more you pay.
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True, but a small business that's just one part of the supply chain pays tax on its input, and gets taxed on it's output. The more different companies there are in the production of a good, the more tax gets paid. That puts the product at a competitive disadvantage. The companies that pay minimal tax are the ones that own their entire supply chain. That's what "artificial favouring of vertically integrated companies means". The more capital you have, the less tax you pay to bring a product to market.
My point remains valid. APT is not an efficient tax.
The best tax system (in terms of maximizing tax revenue and minimizing economic distortions) is one that emphasizes VAT.