Taxing consumption versus taxing earnings?

[manifold]

At present, both consumption and earnings are subject to taxation (in most cases). And as both are structured presently, consumption taxes are regressive and earnings taxes are progressive.

Which method of taxation do you think is better/fairer and why?

 

[Oddball]

The fairest are user fees...Fuel taxes and hunting/fishing licenses, for example.

 

[chikenwing]

There are time when I think a national sales tax could be a good change,like everything in this world it comes with a cost not yet seen,could it be less fair to the poor?? would it stifle spending?? But on the flip side,you have more control on the tax you pay,most would save more,and we would be hitting the criminals for some action they presently don't pay. But then what about the budding black market??

I lean more to a flat tax,and some serious spending restraint.

Or just start with some serious spending restrain get our house in order then experiment.

 

[manifold]

The fairest are user fees...Fuel taxes and hunting/fishing licenses, for example.

Why is that fairer?

Bear in mind that this form of taxation is extremely regressive.

 

[WillowTree]

Fair flat tax. No exemptions, no excuses, no exceptions.

 

[chikenwing]

The fairest are user fees...Fuel taxes and hunting/fishing licenses, for example.

They don't broaden the base much,but then people that don't fish,don't help support the ones that do.

Don't think we will ever have a tax thats completely fair to everyone.

 

[manifold]

Fair flat tax. No exemptions, no excuses, no exceptions.

On earnings, with no distinction between wages and capital gains?

If so, I could be on board with that, if it were to replace all consumption taxes.

 

[Rocko]

Everyone would have some skin in the game and it's a better revenue generating system.


edit: to replace income taxes.

 

[occupied]

Wow, a real topic that asks a good question. Are you lost?

State tax systems are terribly regressive, if the bottom pay no federal tax they damned sure foot the bills for the states.

http://www.itepnet.org/whopays3.pdf

My own state, Alabama, comes in near the top for it's very low top rate and heavy consumption taxes.

 

[manifold]

Everyone would have some skin in the game and it's a better revenue generating system.


edit: to replace income taxes.

So you're saying a system that only taxes consumption would be best?

 

[Oddball]

The fairest are user fees...Fuel taxes and hunting/fishing licenses, for example.

They don't broaden the base much,but then people that don't fish,don't help support the ones that do.

Don't think we will ever have a tax thats completely fair to everyone.

This isn't about broadening the base...It's about keeping gubmint in its box.

Taxes on incomes and sales just give politicians more money to expand bureaucratic meddling and to try and buy votes.

 

[g5000]

Income taxes tax good behavior (production).

I am coming around to the Fair Tax, which taxes consumption. I kind of support something like the GST they have in Canada, but the Fair Tax seems a lot simpler, cheaper, and more transparent, and tougher to cheat.

The Fair Tax is a national sales tax of sorts.

Under the Fair Tax, everyone gets a "prebate" to offset the regressive nature of a sales tax.

The Fair Tax eliminates the need for Social Security tax, income tax, Medicare tax, death tax, capital gains tax, EVERY tax. Therefore, it eliminates a shitload of collection points. Less paperwork for employers and everyone else except retailers. And the IRS can shrink to a tiny fraction of its current size. And you don't need H&R block to do your taxes any more.

It also gives exporters an advantage since exports aren't taxed at all. Business to business transactions are not taxed like they are in a VAT.

To cheat on the Fair Tax, both the buyer and seller would have to agree to cheat, and I don't see that happening at Best Buy.

Plus, anyone who earns their income illegally would have to pay a sales tax.

The best part is that everyone would know instantly when Congress had raised their taxes, and would feel the effects immediately.

There would be no hidden tax increases.

And nobody, not even Big Oil or Wall Street, gets a carve-out.

 

[chikenwing]

Fair flat tax. No exemptions, no excuses, no exceptions.

On earnings, with no distinction between wages and capital gains?

If so, I could be on board with that, if it were to replace all consumption taxes.

Sounds good,what could be the down side?? I thought Cains 9-9-9 was ok except for the last nine. We will pay ,call it this or that doesn't matter,its the rate that's at the heart.

 

[Old Rocks]

Hell yes. Use taxes. So every time that you cross a state line, county line, or city limits, you stop and pay a toll. Damn, now wouldn't that speed up the rush hour. Sure make bicycles more popular.

 

[Rocko]

Everyone would have some skin in the game and it's a better revenue generating system.


edit: to replace income taxes.

So you're saying a system that only taxes consumption would be best?

yep.

 

[chikenwing]

The fairest are user fees...Fuel taxes and hunting/fishing licenses, for example.

They don't broaden the base much,but then people that don't fish,don't help support the ones that do.

Don't think we will ever have a tax thats completely fair to everyone.

This isn't about broadening the base...It's about keeping gubmint in its box.

Taxes on incomes and sales just give politicians more money to expand bureaucratic meddling and to try and buy votes.

I agree on the don't give them anymore,but broader bases should deliver less pain tax wise.

Now I sound like a socialist LOL

 

[Oddball]

Income taxes tax good behavior (production).

I am coming around to the Fair Tax, which taxes consumption. I kind of support something like the GST they have in Canada, but the Fair Tax seems a lot simpler, cheaper, and more transparent, and tougher to cheat.

The Fair Tax is a national sales tax of sorts.

Under the Fair Tax, everyone gets a "prebate" to offset the regressive nature of a sales tax.

The Fair Tax eliminates the need for Social Security tax, income tax, Medicare tax, death tax, capital gains tax, EVERY tax. Therefore, it eliminates a shitload of collection points. Less paperwork for employers and everyone else except retailers. And the IRS can shrink to a tiny fraction of its current size. And you don't need H&R block to do your taxes any more.

It also gives exporters an advantage since exports aren't taxed at all. Business to business transactions are not taxed like they are in a VAT.

To cheat on the Fair Tax, both the buyer and seller would have to agree to cheat, and I don't see that happening at Best Buy.

Plus, anyone who earns their income illegally would have to pay a sales tax.

The best part is that everyone would know instantly when Congress had raised their taxes, and would feel the effects immediately.

There would be no hidden tax increases.

And nobody, not even Big Oil or Wall Street, gets a carve-out.

The oxymoronic "fair tax" is a big fat joke, that does absolutely nothing to address the completely out of control spending that's going on at all levels.

We need to slash spending by no less than half, not find a "fairer" way to make us all defacto economic slaves to politicians and bureaucrats, who are supposed to be our servants.

 

[manifold]

Everyone would have some skin in the game and it's a better revenue generating system.


edit: to replace income taxes.

So you're saying a system that only taxes consumption would be best?

yep.

I could be on board with this too under one, fairly significant, condition - That the most consumed resource in the entire economy also be subject to the tax, and that's labor.

 

[Oddball]

They don't broaden the base much,but then people that don't fish,don't help support the ones that do.

Don't think we will ever have a tax thats completely fair to everyone.

This isn't about broadening the base...It's about keeping gubmint in its box.

Taxes on incomes and sales just give politicians more money to expand bureaucratic meddling and to try and buy votes.

I agree on the don't give them anymore,but broader bases should deliver less pain tax wise.

Now I sound like a socialist LOL

Meh...I'm for making the people who use public services paying the full costs for them, and leaving those who use little to no services alone.

 

[Rocko]

So you're saying a system that only taxes consumption would be best?

yep.

I could be on board with this too under one, fairly significant, condition - That the most consumed resource in the entire economy also be subject to the tax, and that's labor.

how do you plan on taxing that? You mean services?