Big Brother bans cash transactions

[W2R]

Quote:

Originally Posted by unclemick When I moved there - (1974-2005), people who lived 'off the books' will work for cash, were a significance part of the economy. Barter and cash transactions were also common. heh heh heh - sounds like with the current high unemployment that sort of thing may have picked up a tad'.

You got dat right, Unclemick.

[l2ridehd]

Does Louisiana have a sales tax? Is this just for Pawn shops? What about your local girls of the evening? Your garage sales? Is this an attempt to make sure all transactions are traceable to collect more tax revenue? I would guess the result will be to drive more transactions underground.

[W2R]

Yes, we have a state sales tax (about 4%) as well as local sales taxes (about 4.75% in my parish). You make a good point, and also we have such an overwhelming crime problem in New Orlean that perhaps this would help in stemming the flow of stolen goods being sold as used items. It is still just political maneuvering, IMO, and will quickly be shot down in supreme court as have so many crazy unconstitutional laws in the past, here.

[harley]

Quote:

Originally Posted by MichaelB The intention, of course, is to deter theft and resale of stolen industrial and precious metals, which are untraceable when melted or processed and represent a growing problem for communities, residents and law enforcement around the country. Telephone lines, rail tracks, industrial plumbing and wiring are common targets, as is jewelry. To require dealers purchasing these things to use bank checks is probably not unconstitutional, but to disallow businesses from accepting cash when they sell may be. Pawn shops are exempted because they are already subject to strict record keeping requirements. Flea markets are among the unintended causalities that may find this law unenforceable. I would imagine a superior court would say that if congress and law enforcement feel licensing pawn shops is considered adequate to deal with theft issues the same would apply to dealers of second hand junk (their term). Dealers cannot set up money order shops or stations. That business is subject to rigorous federal banking regulation to prevent money laundering.

I think the stated reason is what you show above. I believe the real (or at least equally important) reason is related to what Uncle Mick said. A way to make sure sales taxes are collected on all transactions. When times get hard, economies go underground. As governments tighten down, people find other ways to accomplish what the people want. If LA goes through with this, I wouldn't be surprised to see non-governmental units of trade popping up, similar to BerkShares or any of the Barter Network currencies already in existence. Squeeze one end of something too hard and stuff will pop out in another spot.

[MichaelB]

A way to collect sales tax. That never occurred to me, but now that unclemick (and others) brings it up, it wouldn't surprise me if that were the real intention. As they say

"Más sabe el diablo por viejo que por diablo"

or, poorly translated,

the devil knows so much more not because he's the devil, but just because he's old and been around ...

and that seems to define unclemick pretty well (and a few more of us that prefer a lower profile.