4 ms·

I understand in some places in Europe (for instance) the price on the shelf is the price including tax. This is not a hard problem to solve. I think Sales tax

I understand in some places in Europe (for instance) the price on the shelf is the price including tax. This is not a hard problem to solve. I think Sales tax for most things is probably the fairest means of taxation. It can be applied equally between the wealthy and the poor. It is applied when you choose to get something, rather than arbitrarily before or after. It tends to be applied evenly whether you're buying a box of chocolates or a flatscreen TV.

Symbiote 3y ago
It's pretty much only the USA where the prices on the shelves aren't the final price with taxes. Sales tax (and VAT) is regressive since poor people spend a much larger portion of their income on goods subject to sales tax.
- hellojesus 3y ago
  Meh, you could lower taxes on inferior goods and increase them on luxury goods to compensate. Income taxes are pure evil as they are unavoidable and maximally painful. As an Oregonian, federal+state income tax means I don't make any money I get to keep until late April. I think about killing myself every year because of it.
  - ksherlock 3y ago
    In 1991, a 10% federal luxury tax went into effect. Result: rich people stopped buying yachts and planes. Revenue raised was a rounding error (less than $13 million in a year and a half), luxury industries were decimated, and the tax was repealed 2 years later.
    - sircastor 3y ago
      So the lesson learned here that very wealthy people are more interested in not paying taxes than they are in owning their own planes and yachts? I understand that $2.2 million is more than $2 million, but I find it kind of baffling that people spending that kind of money on that kind of thing are price sensitive.
    - no_wizard 3y ago
      Yachts and luxury boats yes[0] however it was effective on cars until 2002[1] however they still managed to collect $3.94 billion off the luxury tax by 2000[3] One could argue that if they had the stones to keep the tax in place, eventually people relent and start purchasing high ticket items again, and it could have compounded to make a significant difference by now [0]: https://www.baltimoresun.com/news/bs-xpm-1993-10-07-1993280118-story.html https://www.baltimoresun.com/news/bs-xpm-1993-10-07-19932801... [1]: https://archive.is/pTR5E https://archive.is/pTR5E [3]: https://www.everycrsreport.com/files/20020307_RS20314_f70eb82cf9b47bfb780bd7a057e8c6fe96d48eae.pdf https://www.everycrsreport.com/files/20020307_RS20314_f70eb8...
fomine3 3y ago
More importantly, sales tax is equally applied to foreign companies. I'm theoretically a fan of sales tax since it's very fair tax, but very unpopular for other reason (bad for economy). I think average people (no way to avoid tax) should support sales tax for fairness. Negative income tax for equality.
throwawaymobule 3y ago
The EU has a thing called the clear pricing directive, which mandates all normal taxes be included. (doesn't vibe with laws in 'invitation to treat' countries, but has the same effect) Still seen pfand deposits charged extra in Germany though.

Symbiote 3y ago

It's pretty much only the USA where the prices on the shelves aren't the final price with taxes. Sales tax (and VAT) is regressive since poor people spend a much larger portion of their income on goods subject to sales tax.

hellojesus 3y ago
Meh, you could lower taxes on inferior goods and increase them on luxury goods to compensate. Income taxes are pure evil as they are unavoidable and maximally painful. As an Oregonian, federal+state income tax means I don't make any money I get to keep until late April. I think about killing myself every year because of it.
- ksherlock 3y ago
  In 1991, a 10% federal luxury tax went into effect. Result: rich people stopped buying yachts and planes. Revenue raised was a rounding error (less than $13 million in a year and a half), luxury industries were decimated, and the tax was repealed 2 years later.
  - sircastor 3y ago
    So the lesson learned here that very wealthy people are more interested in not paying taxes than they are in owning their own planes and yachts? I understand that $2.2 million is more than $2 million, but I find it kind of baffling that people spending that kind of money on that kind of thing are price sensitive.
  - no_wizard 3y ago
    Yachts and luxury boats yes[0] however it was effective on cars until 2002[1] however they still managed to collect $3.94 billion off the luxury tax by 2000[3] One could argue that if they had the stones to keep the tax in place, eventually people relent and start purchasing high ticket items again, and it could have compounded to make a significant difference by now [0]: https://www.baltimoresun.com/news/bs-xpm-1993-10-07-1993280118-story.html https://www.baltimoresun.com/news/bs-xpm-1993-10-07-19932801... [1]: https://archive.is/pTR5E https://archive.is/pTR5E [3]: https://www.everycrsreport.com/files/20020307_RS20314_f70eb82cf9b47bfb780bd7a057e8c6fe96d48eae.pdf https://www.everycrsreport.com/files/20020307_RS20314_f70eb8...

fomine3 3y ago

More importantly, sales tax is equally applied to foreign companies. I'm theoretically a fan of sales tax since it's very fair tax, but very unpopular for other reason (bad for economy). I think average people (no way to avoid tax) should support sales tax for fairness. Negative income tax for equality.

throwawaymobule 3y ago

The EU has a thing called the clear pricing directive, which mandates all normal taxes be included. (doesn't vibe with laws in 'invitation to treat' countries, but has the same effect) Still seen pfand deposits charged extra in Germany though.