AEFA Question: Where do embedded taxes come from?

08/03/2019

The accompaning charts explain why the AEFA is a better solution than taxing corporations and businesses big and small to collect income taxes. It shows all of the non-value added tax compliance costs due to labor, tracking and reporting, business decision making, etc., tied to corporate income taxes. See the overview of income taxes on a hammer as it makes its way from raw materials through manufacturing, distribution and sales.  Immediately seen is the labor intensity of taxing income vs. the relatively small amount of effort shown on the right to tax consumption.  Remember, the AEFA rate is revenue neutral and these charts explain why.