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No sales tax is awful! Instead of only getting taxed on purchases (WA), you pay 10% of your entire income to the state. It is tragic! And it also means any unre

No sales tax is awful! Instead of only getting taxed on purchases (WA), you pay 10% of your entire income to the state. It is tragic! And it also means any unreported wages are never taxed. It's pretty much the worst system possible.

Aleksdev 3y ago
Agreed, I hate saving money! /s
babypuncher 3y ago
Raising state income tax to 10% is not enough to exceed what I pay in sales tax in my state, so such a move would be a net positive for me. If I were a millionaire, it would be a very different story, and I would end up paying more in taxes. But if I were that rich, a relatively small change in my tax burden wouldn't have any real impact on my lifestyle, so who cares? I think sales taxes are generally regressive. They disproportionately impact the poor and middle class, who spend a greater percentage of their income on taxable goods and services than the wealthy.
- hellojesus 3y ago
  I'm solidly middle class, and the 10% burden is really painful. Remember that is also counts against the $10k salt deduction federally. As it is, I pay well over the salt threshold in income alone, making all property tax unwriteoffable. The other thing income tax disallows is tax avoidance through nonconsumption. I have to pay it all regardless of how much I consume, which I try to keep low. It also means that my adjusted wages per hour are lower. Spent 70 hours a week on a pressing project? Congrats, you don't get paid OT so not only is your hourly wage lower, but your taxes per hour are disproportionately higher.
  - babypuncher 3y ago
    10% appears to be the tax rate for the upper classes. I make $110,000/year and my tax rate would only be 7%, barely up from the 5% I pay in my current state. But I end up paying 8.5% sales tax on just about everything I buy, so at worst it's a wash.
    - hellojesus 3y ago
      Bracket (Single)/(Couple) | Marginal Tax Rate $0+/$0+ | 5.00% $3,550+/$7,100+ | 7.00% $8,900+/$17,800+ | 9.00% $125,000+/$250,000+ | 9.90% The marginal rate is 9% starting at your dollars above $8,900 single or $17,800 married. Yes, I rounded to 10% in my statements. Even low income earners relative to the median are taxed astronomically in Oregon. It is simply not a progressive policy. It is a painful policy at best.
- ilikehurdles 3y ago
  That’s unbelievable to me. If you make around 75000 as a single filer, you’d send about 5800 in income tax in Oregon. Let’s assume we’d have a wildly high sales tax of 10% instead of an income tax: you’d end up having to spend literally all of your take-home earnings on taxable purchases. In other words spending nothing on groceries, rent, or other bills. Just shopping. Oregon has the highest effective income tax for people earning $75k[1]. [1]: https://www.cnbc.com/2023/02/27/states-with-highest-income-taxes-for-people-earning-75000-dollars.html https://www.cnbc.com/2023/02/27/states-with-highest-income-t...
moffkalast 3y ago
Europe: "Por que no los dos!"
- stackola 3y ago
  But make it 30%+ instead of 10.
  - hellojesus 3y ago
    10% was state only. The Federal gov will take another progressive rate that will make my all-in around 33%. Oregon and WA are exceptions in the US. Most states have both sales and income tax. WA has sales only, and OR has income only. Both have real estate taxes too.
    - drdaeman 3y ago
      Folks living at the border of those two are said to enjoy the best of two worlds ;)
      - no_wizard 3y ago
        Vancouver, WA is the United States' greatest tax hack in existence if you can pull it off
        hellojesus 3y ago
        It truly is the best existence. Unfortunately I work in Pdx so am not able to pull that hack off. Gotta wait until retirement.
deleted 3y ago
[deleted]

Aleksdev 3y ago

Agreed, I hate saving money! /s

babypuncher 3y ago

Raising state income tax to 10% is not enough to exceed what I pay in sales tax in my state, so such a move would be a net positive for me. If I were a millionaire, it would be a very different story, and I would end up paying more in taxes. But if I were that rich, a relatively small change in my tax burden wouldn't have any real impact on my lifestyle, so who cares? I think sales taxes are generally regressive. They disproportionately impact the poor and middle class, who spend a greater percentage of their income on taxable goods and services than the wealthy.

hellojesus 3y ago
I'm solidly middle class, and the 10% burden is really painful. Remember that is also counts against the $10k salt deduction federally. As it is, I pay well over the salt threshold in income alone, making all property tax unwriteoffable. The other thing income tax disallows is tax avoidance through nonconsumption. I have to pay it all regardless of how much I consume, which I try to keep low. It also means that my adjusted wages per hour are lower. Spent 70 hours a week on a pressing project? Congrats, you don't get paid OT so not only is your hourly wage lower, but your taxes per hour are disproportionately higher.
- babypuncher 3y ago
  10% appears to be the tax rate for the upper classes. I make $110,000/year and my tax rate would only be 7%, barely up from the 5% I pay in my current state. But I end up paying 8.5% sales tax on just about everything I buy, so at worst it's a wash.
  - hellojesus 3y ago
    Bracket (Single)/(Couple) | Marginal Tax Rate $0+/$0+ | 5.00% $3,550+/$7,100+ | 7.00% $8,900+/$17,800+ | 9.00% $125,000+/$250,000+ | 9.90% The marginal rate is 9% starting at your dollars above $8,900 single or $17,800 married. Yes, I rounded to 10% in my statements. Even low income earners relative to the median are taxed astronomically in Oregon. It is simply not a progressive policy. It is a painful policy at best.
ilikehurdles 3y ago
That’s unbelievable to me. If you make around 75000 as a single filer, you’d send about 5800 in income tax in Oregon. Let’s assume we’d have a wildly high sales tax of 10% instead of an income tax: you’d end up having to spend literally all of your take-home earnings on taxable purchases. In other words spending nothing on groceries, rent, or other bills. Just shopping. Oregon has the highest effective income tax for people earning $75k[1]. [1]: https://www.cnbc.com/2023/02/27/states-with-highest-income-taxes-for-people-earning-75000-dollars.html https://www.cnbc.com/2023/02/27/states-with-highest-income-t...

moffkalast 3y ago

Europe: "Por que no los dos!"

stackola 3y ago
But make it 30%+ instead of 10.
- hellojesus 3y ago
  10% was state only. The Federal gov will take another progressive rate that will make my all-in around 33%. Oregon and WA are exceptions in the US. Most states have both sales and income tax. WA has sales only, and OR has income only. Both have real estate taxes too.
  - drdaeman 3y ago
    Folks living at the border of those two are said to enjoy the best of two worlds ;)
    - no_wizard 3y ago
      Vancouver, WA is the United States' greatest tax hack in existence if you can pull it off
      - hellojesus 3y ago
        It truly is the best existence. Unfortunately I work in Pdx so am not able to pull that hack off. Gotta wait until retirement.

deleted 3y ago

[deleted]