by "Gig 601XL Builder" wr.giacona@coxDOTnet Nov 2, 2005 at 02:36 PM


"Skylune" wrote in message
lkaboutaviation.com...
Tax man is Unfriendly, Boo Hoo!
by George Patterson Nov 2, 2005 at 06:20 PM


Skylune wrote:

Why not eliminate sales taxes
on tractors, to benefit farmers?

Apples & oranges here. Light planes are luxury items. Tax them too
much,
and
fewer get bought. The only way a sales tax can work in conjunction with
an

income tax is to tax necessities.

George Patterson
Drink is the curse of the land. It makes you quarrel with your
neighbor.
It makes you shoot at your landlord. And it makes you miss him

George: U seem to be a reasonable guy, and your punch lines (Drink is
the
curse of the land....) are awesome. But, are you seriously proposing
applying the sales and use tax to pharmaceuticals, groceries and
clothing, while having nonessential purchases such as light aircraft
exempt?

All I am saying is that purchase of an aircraft (and maintenance)
should
be subject to the sales tax. Exempting it distorts economic behaviour
and
means that other sectors must be taxed more heavily, in order to
compensate
for the "tax expenditure." (Notice the period inside the quotation
mark
-- I don't want criticism here!)


Oh S-lune, you have proven that you nothing of aviation and now you have
widened your cluelessness into economics. Any tax distorts economic
behavior. If you are a government and are making say $1million on the
purchase tax as well as lower income from the original payroll tax."


Wow, You really need to stick to aviation. Define "payroll tax" and how
this differs from an Income tax. What on earth is a "purchase tax?" No
state in the nation has that, nor does the federal government. And when
you say "any tax distorts economic behaviour," that is simply incorrect.


The question here is whether airplane purchases should be exempt from
sales taxes. Not whether "luxury taxes" should be re-imposed: these also
distort economic behaviour (in the oppposite direction as subsidies or tax
exemptions, obviously).

Quick Econ 101 recap: A tax which is broad based (i.e. limited
exemptions) with a low rate does not distort economic behaviour.