The "cascading" effect is an argument that is merely theoretical and qualitative. That is to say, when you consider the quantitative and practical aspects the argument truly disappears according to industry executives interviewed over the years and Dr. Feige. Rubicon was right, the tiny rate and the tax savings accruing to profitable companies will negate concern about this. Even if there was concern about intermdeiate transactions. Dr. Feige testified before the President's Panel that to exclude all intermediate transaction would only eliminate 7% of the tax base which we've voluntarily cut by 50% whemn estimating the per transaction/per side rate of 0.3%.
One thing I'm impressed with in this lenghty conversation is the isolation of a detail and holding it out as a fatal flaw. Sure there are ways around it and you are not going to cover everything perfectly BUT these are all very marginal ie barter etc. The savings and opportunities created by such a tax system will far, far outweigh these details.
On another subject, you are all absolutely right the movement needs funding to be recognized. I hereby put out an appeal for leadership in this area. Neither Dr. Feige or myself are capable or have the time to pursue this aspect and the concept has clearly suffered accordingly. Therefore, I appeal for a person to step forward, prepare a plan that will be consistent with Dr. Feige's vision that they can execute.
