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Even if the rate is variable, sales taxes are still regressive. Poor people spend a much larger % of their income on goods compared to rich people. For me, pers
by zibby8 4y ago
Even if the rate is variable, sales taxes are still regressive. Poor people spend a much larger % of their income on goods compared to rich people. For me, personally, my sales tax would need to be around 1,000% (for every dollar I spend, I pay $10 in tax) to match what I pay in income tax.
- nightski 4y agoDepends on what they are spending it on. If poor people are buying food & housing it would be tax free. If they are buying large screen TVs maybe not so much. But even then the claim was that prices would come down eliminating most of the cost of the tax (due to no taxes on businesses including payroll taxes). It also might mean higher wages. Obviously there was no way to prove these things as it hasn't been tried, but there was a lot of research done trying to model it out.
- zibby8 4y ago> But even then the claim was that prices would come down eliminating most of the cost of the tax (due to no taxes on businesses including payroll taxes) We actually frequently try lowering corporate taxes. What we find is that prices stay high, wages stay low, but profits increase. Crazy.
- nightski 4y agoNot payroll and other taxes. You are talking taxes on corporate profits.
- PaulDavisThe1st 4y agoFairly sure most people would consider that "corporate tax" (even if some other things might also be "corporate tax")
- nightski 4y agoI'm not following, it doesn't really matter what they consider it - I don't remember it being done before (reducing payroll taxes). Currently both the employer and the employee pay a big chunk here. In addition sole proprietors and self employed individuals pay even more.
- PaulDavisThe1st 4y agoI'm a self-employed sole proprietor in the USA. I get to exclude 20% of my income from taxation for no reason other than TFG deemed it a good idea. You appeared to be making a claim that cutting taxes on corporate profits was somehow not cutting corporate taxes.
- nightski 4y agoA sole proprietor isn’t a corporation. I get the 20% deduction as well but it only applies to self employed individuals. All I was saying is I don’t think they have tried cutting corporate taxes other than the main corporate tax rate on profits. I think there was a misunderstanding.
- RappingBoomer 4y agobut almost all the so-called 'socialist' nations in europe have heavier sales taxes...but we cannot do it here because it's regressive and we are so much more leftist than europe...tee hee...
- zibby8 4y ago"Socialist" nations also have income tax. The topic of discussion is replacing income tax with a larger sales tax.