shintao
Take Down ~ Tap Out
- Aug 27, 2010
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The only fair tax is a tax I don't have to pay. A sales tax is unfair to those that must use all their income just to survive. A graduated income tax is unfair to high earners. An estate tax is unfair to those that own a lot of property. There really is no fair tax.
When you eliminate deductions and credits you take away governments ability to influence how we spend our money. A deduction or credit for hiring new employees encourages hiring. A deduction for mortgage interest encourages home purchases. Capital gains tax encourages investments. Tax free municipal bonds lower the cost of borrowing for states and local government. etc.....
That's why a combination of sales tax and income tax for incomes over $3 million IS fair.
Buy a Ferrari and pay Ferrari tax on the sale - buy a Chevrolet Aveo and pay considerably less in taxes (unless you're stupid enough to pay $135,000 for a Chevrolet Aveo).
Supplement the sales tax with a 7% flat tax on income over and above $3 million to make it fair.
Any combinations of taxes on an amount determined by government gives government to much power and creates bureaucracy.
Buy a Ferrari and your taxed 10% on 200,000$, that is 20k in tax for being rich.
Buy a 10,000,000$ home in Carmel California you pay 1,000,000 in tax without a deduction or loop hole. That is the tax on the rich.
Buy two 15,000 dollar Thermador refriderators and you pay 3,000 in tax. No deduction.
But the poor, how can they pay the tax. A better job, they work, when one works and is paid, even the poor, they are taxed, its called a Social Security tax, 7.5% paid by the boss, 7.5% paid by the employee. That is a 15% tax on every dollar paid to the poor.
A 10% sales tax with no other tax collected gives the working poor an extra 5%, that is more money in the pocket of the poor.
Too simple.
How much do you think a poverty striken person, the poor can make in a year, just scrouging or whatever?? And what would you base your opinion on?