The principle of an APT Tax seems very interesting but, after reading documentations, I still have an important question...
In Latin America countries where various transations taxes have been implemented since the 70's, revenues from these transactions taxes only represent
maximum 1.6% of GDP. On the opposite side, revenues generated from an APT tax seems very large because the APT tax rate could be fixed at 0.6%. However, the
tax base of the South American transactions and of the APT tax seems identical...I know that fraud and tax avoidance was very developped in South America but
is it enough to explain so large differences in generated tax revenues?
I thank you in advance for your helps. I'm sorry for my bad english but I'm not a native speaker;)
South American transaction tax bases?
| Author | Comment | ||
|---|---|---|---|
 Fifi |
South American transaction tax bases? |
Lead | |
|
Posts: 1 (11/18/08 08:56:29) |
|
||
|
rubicon |
I appreciate your English. | ||
|
Posts: 115 (11/19/08 16:50:46) |
Fifi: I'm not famliar with the specific examples of transactions taxes in S. America. But please allow me a couple of quick observations. First APT is proposed as a total replacement tax, replacing and eliminating all other taxes. Second, APT works best in an economy like that of the US with a larger proportion of financial assets to physical assets. As economies develop, this proportion increases in favor of financial assets, as a function of accumulating wealth over time. By taxing large wealth transactions, productive economic activity is taxed less. This encourages still more wealth producing economic activity. I really appreciate you posting here in our language. I'm ashamed to say I could not post here in your language. So, thank you for your very welcome comments presented here, thankfully, in English... Rubicon. |
||
