Quote from: RealBitcoin on October 11, 2015, 09:28:32 AM

Quote from: ngupowered on October 10, 2015, 09:53:51 PM

The definition clearly states that if prices are not regulated and there is competition, there is a free market. So, according to you, where is the gov. regulating prices?

VAT and GST aren't really regulatory in nature since they are just a percentage added and are uniform; companies still (freely) set price on the underlying commodity.

Yes but we look at the consumer price not the manufacturer. The consumer is buying the item at whatever the government sets to.

If a pair of shoes costs 5$ to manufacture, and the government puts 95$ VAT on it, you pay 100$, how the fuck is that not price control?

In my opinion, you are misinterpreting the definition of a "free market". Surely such a high VAT may have an indirect effect on prices, but the manufacturer's price itself is not subject to control. Compare a farmers market where a uniform admission fee is charged but the sellers still set their own price; it's unregulated.

Also, a percentage tax doesn't really affect competition since it subjects everyone to it - competition on equal terms.