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Isn't that the way it already is, for the most part? Granted there are some things that aren't taxed this way (land & food come to mind), but for the most part
by JonFish85 10y ago
Isn't that the way it already is, for the most part? Granted there are some things that aren't taxed this way (land & food come to mind), but for the most part, as money flows through the system, it is taxed.
Buy a laptop for $1,000:
* That comes out of money you've been paid, presumably, so in 43 US states, you've paid income tax already on it, and your company has paid payroll taxes.
* 45 US states charge sales tax, so you pay sales tax.
* If you paid with a credit card, a cut of your transaction goes to the credit card company, who pays taxes on their profits from that transaction.
* The money is transferred to a bank account, and that bank is taxed on the profit that they make from that deposit.
* The laptop company pays taxes on the profits that they make from that laptop (depending on where they're located, but if it was sold in the USA, they pay taxes).
* Any shipping company involved moving that merchandise around paid taxes on the profits they made.
* The company that brought the laptop into the USA pays the import taxes/tariffs associated with it.
Just at a glance, every time something changed hands, it is taxed. And this doesn't get into things like excise tax, which are even more fun.
- dragontamer 10y agoNo. Gifts are taxed only if they are above $10,000. When you give money to your buddy to help pay for a meal, that isn't taxed (money changed hands, didn't it?). Furthermore, there are lots of taxes out there that do not involve the movement of money. Property Taxes are when a municipality agent comes to your property, they make up a number that "sounds right", and then start charging you for it. Furthermore, you aren't taxed when you buy or sell stocks or bonds. (Bernie Sanders wants to change that... cause he doesn't know how bad of an idea that is). You only are taxed on your GAINS: dividends and capital gains. If you buy a stock at $100, then sell it for $110, you are taxed 15% on $10. Not on the $100 or $110 individual transactions. (In contrast, the Financial Trade tax Bernie proposes would be a tax on both the $100 AND $110 transactions)