Page 218 - THE PATH

There must not be any tax except sales tax. It means tax
is paid by the one who uses NEW VALUE. The old value

has already been paid and the already paid amount
should no be paid again.

Thus the question arises who would pay today’s costs
covered by property tax and various other taxes. Of

course, sales tax would cover all social needs.

Sales tax is essentially the increased value of the new

value. This is an example that should clarify this.

A car whose market value today is US $50,000 has

included sales tax of $8,000. Supposing there are no other
taxes and common welfare must be paid, the sales tax

would be $20,000, meaning that a $50,000 car would be
sold for $62,000.

(Note that figures and numbers in the book are fictional
and are only used as a parameter to explain the example.)

Why is this important to understand? Because if this is
seen superficially, it appears insignificant because it looks

the same. It does not matter whether social well-being

(schools, hospitals, police, army, etc.) is paid from this or
that tax. But it is not so. It is important and essential who

should pay for the social well-being.
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