Blues Man
Diamond Member
- Aug 28, 2016
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Actually the Fair tax proposal would not tax used goods at all so that poor guy buying a used car wouldn't have to pay sales tax on it.Poor people also pay the same rate as the wealthy. Just what conservatives want on income tax.Sales taxes are regressive because poor people spend all or most of their money and wealthy folks do not.Sales Taxes:
individuals' annual purchases rather than their paid income taxes, are more accurate indications of their comparative proportional incomes and wealth.
Sales taxes are only regressive in comparison to income taxes, when levied upon those who do not otherwise pay income taxes, (i.e. upon those of much less or no taxable incomes).
[Depending upon the product purchased and the drafting of the law, sales taxes can to some extent be drafted to effectively be greater or lesser regressive].
At some point increases of tax revenues less justify the economic consequences of the increases; those points differ for different tax schemes and their purposes. It's my opinion those points are of comparatively lesser rates for sales taxes rather than taxes on incomes or upon almost any other matters. I also believe it's desirable for all while in the USA, and all USA citizens to the extent we're able, should be equitably required to contribute to our tax revenues.
Respectfully, Supposn
Next.
Poor and working people have to spend a large percentage of their earnings on purchases
The wealthy can’t buy that much “stuff”
Actually, you have things half ass backwards.
Wealthy people buy a lot more stuff and a lot more expensive stuff. Very few poor people buying Bentleys, they are saving money by looking for a used Yugo instead.
Instead of the government taxing the same money multiple times the sales tax is only applied once.