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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.
"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?
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.
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.
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.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by TexasLawyer2000
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.
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.
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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