With record deficits, the Obama administration is looking for ways to increase tax revenue. One way is to improve tax compliance. For example, it is estimated that cash transactions that go unreported account for $100B in lost tax revenue.
But how to force compliance? Perhaps one way would be to eliminate legal tender currency and force everyone to use checks or debit/credit cards for all transactions.
Most businesses could easily work this way although I would assume many would prefer to stay with cash for obvious reasons.
Casual businesses such as street vendors present a different issue as they would have no way of processing a debit/credit card or validating a check in real time.
Others may raise privacy concerns since checks and debit/credit cards leave an electronic trail.
MORE and MORE.
But how to force compliance? Perhaps one way would be to eliminate legal tender currency and force everyone to use checks or debit/credit cards for all transactions.
Most businesses could easily work this way although I would assume many would prefer to stay with cash for obvious reasons.
Casual businesses such as street vendors present a different issue as they would have no way of processing a debit/credit card or validating a check in real time.
Others may raise privacy concerns since checks and debit/credit cards leave an electronic trail.
MORE and MORE.
No comments:
Post a Comment