Dear Source:
In response to Ms. Langdon's opinion on sales taxes, I would invite her to state the reasons why a sales tax would be a bad thing. As she mentioned in her article, there were reasons "too numerous to list here". I agree that a sales tax is a giant step away from traditional means of taxing goods and services, namely the gross receipts tax, but I do not agree that it would be hurtful.
When any person buys anything-and I mean anything, in the Virgin Islands, including a service, the cost of the purchase always includes a sales tax. Yes, it is hidden in the price but every vendor must pay the tax and so includes it in the price. A point-of-sale tax would be a bit different. The cost of the product would immediately go down 4% but at the point of sale it would be taxes at, say 5%. This gives the IRB immediate cash and continuous revenues as long as people but goods. Now, remember that the gross receipt tax paces a burden on EVERYTHING sold or and service rendered with no exceptions. A sale tax on the other hand, could exclude certain purchases such as food, prescriptions and other necessities of life. Right now, everyone pays a tax on those things via the cost of the purchase.
I would invite and welcome Ms. Langdon or anyone else to state their case as to why a sales tax would be a bad thing. Perhaps I am missing a larger point. Dialog on these issues are good and it brings out opinion and thought about what is good or bad for our economy. Any other issues are also welcome.
Paul Devine
St. John
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