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Old 10-03-2017, 06:01 PM
 
1,029 posts, read 562,608 times
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Quote:
Originally Posted by NYCresident2014 View Post
The debate surrounding "regressive" taxes usually ignores the elephant in the room- LIFE is regressive. A bag of groceries is a much higher percentage of a poor family's income (or overall wealth) vs a rich family. The same is true for gas, education, clothing, housing, healthcare, and all other aspects of life.

Why are we trying to solve the world's inequality through the tax code?
NYCResident2014, to whatever extent we can remedy the inequities due to our tax policies by modifying our tax policies, I'm suggesting we do so.
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Old 10-03-2017, 06:10 PM
 
440 posts, read 199,505 times
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Quote:
Originally Posted by freemkt View Post
Why then do conservative say the poor don't pay enough tax?
For the same reason liberals say the rich don't pay enough taxes.

For many people, politics color people's view.
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Old 10-03-2017, 09:51 PM
 
5,237 posts, read 2,386,359 times
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Quote:
Originally Posted by Sandpointian View Post
<SNIP>>

You stated that sales taxes are not regressive. This is not true and obvious to anyone with any background in economics.

<SNIP>>
A regressive tax is one in which the rate increases as the base upon which the tax is levied decreases. As such, sales taxes ( as they currently function in the US) clearly aren't regressive. But why don't you tell us about how your background in economics leads you to conclude otherwise.
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Old 10-03-2017, 09:55 PM
 
5,237 posts, read 2,386,359 times
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Quote:
Originally Posted by Supposn View Post
<SNIP>>

The FICA payroll tax is the among, if not the most regressive of all federal taxes.

<SNIP>>
Your continued insistence on this ridiculously false claim is baffling. Do you believe that if you continue to parrot it, it will somehow become true?

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Old 10-04-2017, 08:43 AM
 
1,029 posts, read 562,608 times
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Quote:
Originally Posted by TaxPhd View Post
A regressive tax is one in which the rate increases as the base upon which the tax is levied decreases. As such, sales taxes ( as they currently function in the US) clearly aren't regressive. But why don't you tell us about how your background in economics leads you to conclude otherwise.
TaxPhd, refer to Federal taxes ain't that progressive.
Why don't you explain what fault you may find with the post's logic or accounting?
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Old 10-04-2017, 08:55 AM
 
5,237 posts, read 2,386,359 times
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Quote:
Originally Posted by Supposn View Post
TaxPhd, refer to Federal taxes ain't that progressive.
Why don't you explain what fault you may find with the post's logic or accounting?
Why don't you address the post that you responded to?

Quote:
Originally Posted by TaxPhd
A regressive tax is one in which the rate increases as the base upon which the tax is levied decreases. As such, sales taxes ( as they currently function in the US) clearly aren't regressive.
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Old 10-13-2017, 06:10 PM
 
1,029 posts, read 562,608 times
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Quote:
Originally Posted by TaxPhd View Post
A regressive tax is one in which the rate increases as the base upon which the tax is levied decreases.
TaxPhd, no, I agree with 17thAndK's preferred definition,
Quote:
Originally Posted by 17thAndK View Post
... A tax that takes a larger percentage of income from low-income groups than from high-income groups.]
Sales taxes are not particularly more or less regressive when compared to our ostensibly progressive federal income tax rates upon net incomes.
But from the standpoint of those with no incomes or insufficient incomes that are not subject to income taxes and not shielded from inflation, a general sales tax is a regressive tax.

FICA and SECA taxes upon wages are the most regressive of federal taxes.
Employees and their dependents, (i.e. those most dependent upon employment derived incomes) would net benefit if we reduced our federal revenues due to taxes levied only upon wages and payrolls.

If we revenue neutrally replaced the lost revenues with a general sales tax. This would increase the net purchasing powers of employees and their dependents, reduce net taxes upon employees and their employers, and enable USA products to better compete with foreign product prices both within and beyond USA's borders.
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Old 10-13-2017, 06:37 PM
 
1,029 posts, read 562,608 times
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General sales tax compared to income taxes.

Opponent of general sales taxes correctly point out that lesser income earners must spend a greater proportion, and higher income earners need not, and generally do not spend their entire incomes for products that would be subject to a general sales tax. Lesser income earners generally do spend a greater proportion of their incomes for such items.
Truly, the poor have little or no discretionary income and the wealthy have more such discretionary income. The poor of necessity generally must spend the greatest comparative proportion of their incomes for such products.

The wealthy' expenditures that would not be subject to a general sales tax, are currently items that that reduce the wealthy' taxable incomes. There's be little comparative differences between the proportions of the wealthy' annual revenues that would be subject to general sales tax, or what's now their current taxable net incomes.
Truly, a general sales tax is not significantly more or less regressive than our current progressive tax rates upon net incomes.

The proposed Fair-tax would replace federal income taxes with a general sales tax and additionally provide compensating considerations for poorer individuals which currently do not now pay income taxes.

Its been proposed to reduce the taxes that are levied only upon wages and payroll, replacing lost revenues with a federal sales tax.
Refer to the thread
Replacing reduced FICA payroll tax rates with a federal general sales tax.
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Old 10-13-2017, 07:26 PM
 
Location: Paranoid State
12,685 posts, read 9,455,990 times
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A variation on sales tax is a consumption tax, and you can make it have some nice properties.

With a consumption tax, you can make it as progressive as you like.

Here's one example of how to implement a progressive consumption tax:

1) at the end of the tax year, you file a form with the IRS that says how much you earned that year, just as you do today. For example, let's say you earn $100,000 between wages and investments.
2) you specify how much you saved from your earnings via deposits to savings institutions such as banks & brokerage. For example, let's say you save $20,000.

You subtract $20K from $100K, which leaves $80K -- and that is how much you actually consumed.

Then you have progressive brackets on consumption. For example, the first $25K of consumption could be tax free, and then apply various progressive tax rates on higher amounts of consumption. So this has a great feature that you are incented to save over time, and your savings can grow & multiply so that by retirement age you might have quite a nice nestegg -- after all, savings grow tax free; they are only taxed when withdrawn to be consumed.

Later in life, you engage in "dissaving" or "negative savings." Let's say you're retired and living by withdrawing X% per year from your accounts, and this year you withdraw $50K to consume goods and services. So, you pay consumption tax on it. Again, the first $25K (or whatever) is tax free consumption, with progressive brackets as you go up in consumption.

If a Billionaire wants to spend $350 Million on a yacht, she can do so, but she's going to pay a hefty progressive consumption tax bill.
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Old 10-14-2017, 10:32 AM
 
1,029 posts, read 562,608 times
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SportyandMisty, I'm among the proponents for a general federal sales tax to replace the revenue losses due to our reducung a significant portion of our taxes that are levied only upon wages and payrolls.
This proposal would reduce federal effective tax rates upon all USA employees and their employers and increase the net purchasing powers of employees and their dependents.
Refer to Replacing reduced FICA payroll tax rates with a federal general sales tax.

Reducing the effective tax rates of employers effectively reduces taxes upon enterprises such as corporations, somewhat reduces prices of USA products and enables them to be more competitive to prices of foreign products within and beyond USA's borders.

I am not opposed to a general federal sales tax replacing tax revenues due to uniform reduction of individuals' income taxes per capita tax credits or due to reduction of all tax brackets regular effective tax rates, providing there's additional financal consideration for the poor not subject to income taxes.
Refer to Incremental enactment of a fair tax
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