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Old 12-12-2019, 01:11 PM
 
17 posts, read 4,383 times
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For one thing the term sales tax (or VAT in case you are living somewhere that uses that instead) is misleading. Yes it's technically collected when buying something rather than being taken of your salary/income directly but in the end you are still using your salary/income to actually pay the tax. This means that in a way taxing sales/consumption is actually just a dumb way to tax somebody's income.



Secondly sales/consumption taxes have a greater chance of harming the economy compared to income taxes since they de-incentivize spending money on goods while also possibly having other unwanted side effects such as discouraging tourism.


You can debate how high or low income taxes should be but in any case I would argue that sales taxes are nonsense regardless of if one desires high or low taxes.



Actually, I would argue that ALL taxes in general except the income tax is stupid. If I could I would just instate a flat 50% income tax and then get rid of all other taxes except maybe certain kinds of tariffs.
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Old 12-12-2019, 01:20 PM
 
Location: The Berk in Denver, CO USA
14,479 posts, read 21,289,581 times
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"Sales taxes are objectively inferior to income taxes"
Really?
Depends upon your objective.
Sales taxes hit the poor harder than the rich. Isn't that the best of all possible worlds?
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Old 12-12-2019, 02:06 PM
 
Location: Fort Payne Alabama
1,412 posts, read 1,687,965 times
Reputation: 2647
One must remember that almost 50% of population pays zero Federal Income Tax. If it was not for sales tax, they would make no contributions at all.
If everyone paid in maybe at least 5% of their pre-deduction income, I would consider being in favor of.
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Old 12-12-2019, 02:20 PM
 
1,983 posts, read 743,619 times
Reputation: 1826
Quote:
Originally Posted by GreggT View Post
One must remember that almost 50% of population pays zero Federal Income Tax. If it was not for sales tax, they would make no contributions at all.
If everyone paid in maybe at least 5% of their pre-deduction income, I would consider being in favor of.
Sales tax is not a Federal tax. A large portion of the 47% that don't pay Federal income tax, do pay state income tax. So your statement is a bit disingenuous.
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Old 12-12-2019, 02:42 PM
 
3,008 posts, read 1,968,807 times
Reputation: 6779
Quote:
Originally Posted by splattenburgers View Post
For one thing the term sales tax (or VAT in case you are living somewhere that uses that instead) is misleading. Yes it's technically collected when buying something rather than being taken of your salary/income directly but in the end you are still using your salary/income to actually pay the tax. This means that in a way taxing sales/consumption is actually just a dumb way to tax somebody's income.



Secondly sales/consumption taxes have a greater chance of harming the economy compared to income taxes since they de-incentivize spending money on goods while also possibly having other unwanted side effects such as discouraging tourism.


You can debate how high or low income taxes should be but in any case I would argue that sales taxes are nonsense regardless of if one desires high or low taxes.



Actually, I would argue that ALL taxes in general except the income tax is stupid. If I could I would just instate a flat 50% income tax and then get rid of all other taxes except maybe certain kinds of tariffs.
Your understanding of the term objective is as poor as your understanding of different types of taxes.
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Old 12-12-2019, 02:48 PM
 
Location: East of Seattle since 1992, originally from SF Bay Area
31,169 posts, read 56,785,610 times
Reputation: 33410
Quote:
Originally Posted by TexasLawyer2000 View Post
Sales tax is not a Federal tax. A large portion of the 47% that don't pay Federal income tax, do pay state income tax. So your statement is a bit disingenuous.
Yes, federal tax pays for such things as the government in DC, Military, and interstate highways. Local income taxes and sales taxes are spent on local expenses as designated by the state, county or city. In our case we have no state income tax so naturally our sales tax is higher. We prefer it that way because food is exempt and the rest is optional, you can choose whether or not to buy expensive items that are not truly needs but just wants. Our property taxes are also higher here where I live but because the voters pass bonds and levees for specific purposes that add value to our property, such as better schools, fire protection and law enforcement.
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Old 12-12-2019, 02:58 PM
 
6,410 posts, read 2,933,694 times
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Sales taxes (and there are many types) are inferior to income taxes (and there are many types) for some things, superior for some other things, and for some things it's a wash.
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Old 12-12-2019, 03:34 PM
 
Location: Fort Payne Alabama
1,412 posts, read 1,687,965 times
Reputation: 2647
Quote:
Originally Posted by TexasLawyer2000 View Post
Sales tax is not a Federal tax.
Duh!!!

Quote:
A large portion of the 47% that don't pay Federal income tax, do pay state income tax. So your statement is a bit disingenuous.
Not disingenuous at all. State taxes go for different things than Federal Incomes, they are not all thrown in one pot!
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Old 12-12-2019, 03:53 PM
 
Location: Tijuana Exurbs
4,086 posts, read 10,636,038 times
Reputation: 4931
Sales taxes are a way to tax those who earn their income in the underground economy and would otherwise go mostly untaxed.

Sales taxes may be a disincentive to spending, but most economists worry about disincentives to saving.
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Old 12-12-2019, 04:01 PM
 
3,803 posts, read 9,797,437 times
Reputation: 7415
Real estate cannot get up and walk away. It remains to be "collateral" for the debt of taxes. Inventory, items sold, or people can go missing.
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