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Rent is DEFINITELY consumed disproportionately by the poor, hence a sales tax on rent is inherently regressive.
freemkt,
Quote:
Originally Posted by Supposn
LowExpectations, within post #8 I expressed some of my opinions regarding waivers of general sales taxes.
I’m an advocate of waiving sales taxes upon medicines, or food other than that supplied by restaurants, or caterers.
it’s difficult to draft legislation the parses ordinary and luxury priced products. For that reason, I’m advocate of fewer such sales tax waivers upon classes of products. But the political reality is that there will be more than I prefer.
I’m aware to the extent that general sales taxes are waived upon sales of products that are more often or in greater quantities consumed by lower income persons, we can to some limited extent transform a sales tax to be effectively more progressive.
But it’s difficult to draft regulatory provisions for such products as not to unduly reduce tax revenues.
Travel within reasonable commuting distances on mass transportation is one of the service products that I would prefer to be waived if the legal drafting did not also allow waivers for longer distances or more luxurious transportation.
Difficulty of legal drafting is much less problematic for products or services that can be linked to individuals’ primary residences. It’s feasible to waive a capped amount upon rents, specific utilities, and other services linked to such residences; those capped amounts should be annually cost-of-living adjusted.
In part it is because our current income tax system penalizes savings.
I think we should eliminate the federal income tax system and replace it with a progressive consumption tax system. It could be designed to be as progressive as wanted while simultaneously encouraging savings and hence capital formation.
You think people draw down home equity or fail to save due to fear that they will be taxed on earnings?
Speaking for myself ( a prolific "saver/investor"), the thought never entered my mind. As to those barely making ends meet, I cannot imagine they think about that either. In between we have those who could save, but cannot delay gratification. A whole lot of them spend fluidly and stick their kids with student loans. Despite having at least 18 years to prepare. Doubt tax strategy influences their thinking at all.
Why do homeowners always bring up property taxes? Homeowners should be GRATEFUL they own their home - property taxes are higher on rental property of equal value in 36 states. All homeowners who think their property taxes are tgoo high should sell their home, go rent, and see how they like it.
Not my point at all. I brought up a host of expenses. Property tax is only one. Home ownership can be rewarding. It is also very expensive in terms of time and money.
Some fellow who rents a penthouse in Manhattan is not lamenting his lot in life. Why? Because it is not all about rent vs own. And you are not really here lamenting rent either. If you had 10 million dollars and decided to rent a nice place and move every year, you might be perfectly happy renting, even if there was a premium involved.
I think you are lamenting your lot in life. The path that brought you to this place. And what you perceive to be the unfairness of it all. Not for me to judge. But, it does appear you are fixated on rent and feel you are being victimized. Thing is that you are not going to bring about change that will repair this situation. The only thing you can do is what many others have done, which is to fix your own personal situation.
Arguing on the internet with people who have taken control of their own lives may be entertaining, but it will not prove fruitful. And neither will seeking out inequities to use as excuses for not overcoming adversity.
Not my point at all. I brought up a host of expenses. Property tax is only one. Home ownership can be rewarding. It is also very expensive in terms of time and money.
Some fellow who rents a penthouse in Manhattan is not lamenting his lot in life. Why? Because it is not all about rent vs own. And you are not really here lamenting rent either. If you had 10 million dollars and decided to rent a nice place and move every year, you might be perfectly happy renting, even if there was a premium involved.
I think you are lamenting your lot in life. The path that brought you to this place. And what you perceive to be the unfairness of it all. Not for me to judge. But, it does appear you are fixated on rent and feel you are being victimized. Thing is that you are not going to bring about change that will repair this situation. The only thing you can do is what many others have done, which is to fix your own personal situation.
Arguing on the internet with people who have taken control of their own lives may be entertaining, but it will not prove fruitful. And neither will seeking out inequities to use as excuses for not overcoming adversity.
Renting is a perfectly valid lifestyle CHOICE - when it is a choice. Rent serfs, by definition, do not "choose" to rent insofar as they lack alternatives.
Renting is a perfectly valid lifestyle CHOICE - when it is a choice. Rent serfs, by definition, do not "choose" to rent insofar as they lack alternatives.
You have as much choice as anyone else. You just have to be willing to do what it takes to own a house.
You think people draw down home equity or fail to save due to fear that they will be taxed on earnings?
Speaking for myself ( a prolific "saver/investor"), the thought never entered my mind. As to those barely making ends meet, I cannot imagine they think about that either. In between we have those who could save, but cannot delay gratification. A whole lot of them spend fluidly and stick their kids with student loans. Despite having at least 18 years to prepare. Doubt tax strategy influences their thinking at all.
Do you think that people don't behave consistently with how they are motivated?
Rent is DEFINITELY consumed disproportionately by the poor, hence a sales tax on rent is inherently regressive.
LowExpectations and FreeMkt, general sales tax in the USA are not levied upon mortgages or real-estate sales, and I’m unaware of their being levied upon real-estate rentals.
These posts regarding rental and/or purchases of residences are not germane to merits, or the disadvantages of replacing portions of FICA taxes with a general sales tax.
Quote:
Originally Posted by Supposn
General sales taxes.
LowExpectations, ... to the extent that general sales taxes are waived upon sales of products that are more often or in greater quantities consumed or used per capita by lower income persons, or upon capped monthly amounts of such utility service products sold and delivered to individual residences, a flat general sales tax is transformed to that extent be a more progressive sales tax.
My opinion is medicine, or food other than that supplied by restaurants, or caterers, not be subject to the general sales tax. ...
Because it’s difficult to parse ordinary and luxury priced products, I’d want much fewer waivers of sales taxes on classes of products. That’s much less of a problem for utility services that can be measured and confirmed as they're provided to individual residences via pipe or cable.
There is no law compelling participation in FICA (and being liable to pay the tax) nor punishing anyone who does not participate.
“The Social Security Act does not require an individual to have a Social Security Number (SSN) to live and work within the United States, nor does it require an SSN simply for the purpose of having one...”
- - - The Social Security Administration
Pursuant to the Declaration of Independence we have creator endowed rights to life, liberty, absolute ownership, and so forth.
Of course, you do know that no government instituted to secure endowed rights can tax those endowed rights.
Taxes can only be levied on government privileges.
You were informed which privileges are subject to taxation, right?
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