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Currently, the top 50% of taxpayers pay 89% of all federal income taxes. And only about half of Americans pay income tax. So doing some back of envelope math,

Currently, the top 50% of taxpayers pay 89% of all federal income taxes. And only about half of Americans pay income tax. So doing some back of envelope math, that corresponds to maybe about a $200 tax savings for the median citizen. But an increase of about $600 on their purchases. This is an extremely bad deal even if you are moderately wealthy. Income tax is not an ideal tax, but at least by its nature it's leveraged on people with income. But a sales tax affects you even if you are retired. There is no strategic savings strategy you can use to avoid it. There's an irony that the last election was supposedly about inflation and the economy - but between this, the tariffs, and the (supposed) foreign policy agenda - we're looking at one of the most expensive US administrations sessions ever.

rickydroll 2y ago
I agree with what you wrote but your opening statement could use some nuance. What portion of taxpayers don't pay tax because they make too little compared to those using tax avoidance schemes not to pay tax? Of the top 50%, what does the tax vs income chart look like? As income rises, where does spending money come from? Wages, CC, selling stocks/bonds, loans backed by assets (stocks, bonds, etc) This info could help refine where taxes should go. I have come to accept that a wealth tax would be a good tax to have. I came to this by playing around with the simplistic model at the end of the pudding article linked to below. It approximates the impact of a wealth tax. https://pudding.cool/2022/12/yard-sale/ https://pudding.cool/2022/12/yard-sale/