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There are many other taxes. There are tariffs, capital gains, or estate taxes, for example. Additionally, not all consumption taxes are across-the-board sales

by cowpig 4y ago

There are many other taxes. There are tariffs, capital gains, or estate taxes, for example. Additionally, not all consumption taxes are across-the-board sales taxes. Across-the-board sales taxes are highly regressive taxes, because basic consumption needs are relatively flat across a population, so the poorest people pay a much higher percentage of their income in sales taxes than the wealthy.

b112 4y ago
Yes, so here, Canada, we tend to make that flat sales tax more complex, so some groceries are excempt, some meals, etc. Which makes it harder for people to know all the ins and outs of...
- xboxnolifes 4y ago
  > Yes, so here, Canada, we tend to make that flat sales tax more complex, so some groceries are excempt, some meals, etc. This is also the case in the US (varies state by state).
xtracto 4y ago
The way that could be fixed is classifying goods and services into socio-economic class demand (A, B, C+, etc). Here in Mexico we have something called the "canasta básica" (basic basket) which encompasses a set of goods that are defined as basic for living (they are 40 https://www.gob.mx/canastabasica https://www.gob.mx/canastabasica unfortunately the list is in an image so not easy to google translate... stupid government pages). These are closely guarded by the government and I believe the price is closely protected. Something like that could be extrapolated, and set different taxes to different goods and services. Like, (IMHO, please don't flame me) an XBOX should be heavily taxed, running shoes should be heavily taxed, a "gaming graphics card" should be heavily taxed. Same with services: "go cart racing" should be heavily taxed, Fast-food should be heavily taxed, while fixing stuff (fixing your blender, or your washing machine) should not.
- Spooky23 4y ago
  It gets complicated. In New York, food and clothing is not taxable. The gotcha is “prepared food”, which is taxable. For example, an unsliced bagel is food. A sliced to order bagel is prepared food and taxable. A system like you describe would be insanely complex. Here’s NY guidance on when a sandwich is taxable: https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sandwiches.htm https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sandwi... As insane as that is, I think it makes the sales tax more progressive, as poorer people spend a high proportion of income on food. I am always struck when I travel to a place like South Carolina, where the property taxes are low, but people with nothing are paying 9% sales taxes on food.

by cowpig 4y ago

b112 4y ago

Yes, so here, Canada, we tend to make that flat sales tax more complex, so some groceries are excempt, some meals, etc. Which makes it harder for people to know all the ins and outs of...

xboxnolifes 4y ago
> Yes, so here, Canada, we tend to make that flat sales tax more complex, so some groceries are excempt, some meals, etc. This is also the case in the US (varies state by state).

xtracto 4y ago

The way that could be fixed is classifying goods and services into socio-economic class demand (A, B, C+, etc). Here in Mexico we have something called the "canasta básica" (basic basket) which encompasses a set of goods that are defined as basic for living (they are 40 https://www.gob.mx/canastabasica https://www.gob.mx/canastabasica unfortunately the list is in an image so not easy to google translate... stupid government pages). These are closely guarded by the government and I believe the price is closely protected. Something like that could be extrapolated, and set different taxes to different goods and services. Like, (IMHO, please don't flame me) an XBOX should be heavily taxed, running shoes should be heavily taxed, a "gaming graphics card" should be heavily taxed. Same with services: "go cart racing" should be heavily taxed, Fast-food should be heavily taxed, while fixing stuff (fixing your blender, or your washing machine) should not.

Spooky23 4y ago
It gets complicated. In New York, food and clothing is not taxable. The gotcha is “prepared food”, which is taxable. For example, an unsliced bagel is food. A sliced to order bagel is prepared food and taxable. A system like you describe would be insanely complex. Here’s NY guidance on when a sandwich is taxable: https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sandwiches.htm https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/sandwi... As insane as that is, I think it makes the sales tax more progressive, as poorer people spend a high proportion of income on food. I am always struck when I travel to a place like South Carolina, where the property taxes are low, but people with nothing are paying 9% sales taxes on food.