A modest proposal on taxes

[Skull Pilot]

Obama will let the Bush tax cuts expire in December.

Problem solved.

So you'll be paying more too; good.

 

[The Rabbi]

Obama will let the Bush tax cuts expire in December.

Problem solved.

REALLY, so liberals wont compalin about stuff anymore? IF that's the case I'd be tempted to let em expire.

If they were so bad then why did Obama sign a bill passed by the Democratic Congress extending them?
THey aren't the Bush tax cuts anymore. They are the Obama tax cuts.

 

[Desperado]

You make a good point concerning excluding essentials from the sales tax as many states do, but it is still a regressive tax that put's a larger burden on the poor than the wealthy.

The more I think about it the more I dislike any exemptions.
it would be a way to maintain a low percentage of 4% or less. It is a fair tax that is equal for all. You buy a car no matter if it a Porsche or a Yugo you still pay 4%.

Putting an addition sales tax of say 4 or 5% on top state and a local sales tax which are as high as 10% will discourage retail purchases and encourage savings and purchase of tax-exempt items even thou income taxes might be reduced or eliminated..

Since the plan isd to eliminate the Income tax, you will have that much more of your money to use. You say "encourage savings" like it is a bad thing when in fact it is just the opposite. People will save and then they will make the purchase without the use of a credit card or a loan.

A second problem of sales taxes as has been stated previously, is you depend on the honesty of the retailer in reporting sales. With income taxes, income is reported both by the payer and the receiving so it is harder to hide income for tax purposes.

As if the current system did not have tax cheats or people that work under the table thus avoiding income tax.

 

[Flopper]

You make a good point concerning excluding essentials from the sales tax as many states do, but it is still a regressive tax that put's a larger burden on the poor than the wealthy.

The more I think about it the more I dislike any exemptions.
it would be a way to maintain a low percentage of 4% or less. It is a fair tax that is equal for all. You buy a car no matter if it a Porsche or a Yugo you still pay 4%.

Putting an addition sales tax of say 4 or 5% on top state and a local sales tax which are as high as 10% will discourage retail purchases and encourage savings and purchase of tax-exempt items even thou income taxes might be reduced or eliminated..

Since the plan isd to eliminate the Income tax, you will have that much more of your money to use. You say "encourage savings" like it is a bad thing when in fact it is just the opposite. People will save and then they will make the purchase without the use of a credit card or a loan.

A second problem of sales taxes as has been stated previously, is you depend on the honesty of the retailer in reporting sales. With income taxes, income is reported both by the payer and the receiving so it is harder to hide income for tax purposes.

As if the current system did not have tax cheats or people that work under the table thus avoiding income tax.

To anyone who pays income tax, replacing the income tax with a national sales taxes seems to be a wonderful idea, so simple, so easy, but there are serious drawbacks.

1. People in lower income groups will bear more of the tax burden than the wealthy. A national sales tax in lieu of income tax would be a godsend for the wealthy because they spend much less of their income than the middle class or the poor.

2. People will be motivated to buy their stuff outside of America. Then we'll need to have onerous customs inspections and more tax laws to regulate the importation of personal property. We certainly should not be enacting laws to encourage people to purchase more goods from overseas.

3. Without a constitutional amendment limiting the forms of taxation our government can impose on us we'll get tax creep. In other words, we'll probably end up with BOTH a national sales tax AND a national income tax.

4. It is much easier to cheat on sales tax than income tax. The income tax has a double reporting system. The payer of income reports it to government and the receiver reports it.

The current tax system spreads the tax burden across all income groups. State and local government levy sales taxes which puts an increased burden on the middle class and the poor. Income taxes put more of the tax burden on the wealthy. We should not dump the income tax in favor of a highly regressive system that will only widen the wealth gap in America, but rather fix the income tax so it's fairer and simpler.