Would You Be In Favor Of Doing Away With The Income Tax And Replacing It With A Consumption Tax (employment, drugs)

[Quick Enough]

Originally Posted by beb0p

I just want to make sure we're on the same page - what this means is we do away with income tax but we raise sales tax and add a services tax to make up the difference. If you hire someone to mow the lawn, now you have to pay a tax. If you buy a product, the sales tax will probably need to be around 30-40% to make up the difference of the missing income tax revenue. Since buying will be very expensive, consumer will delay big purchases or flock to the used market. It'll kill our economy.

Bottom line, it'd be good very good for me.

But it'll ruin the economy.

So I'm torn.

.

"I just want to make sure we're on the same page - what this means is we do away with income tax but we raise sales tax and add a services tax to make up the difference"


Where did you see that?


A national sale tax, ONLY, is the answer.

[albert648]

Originally Posted by oberon_1

A better (and practical) solution is replacing income tax with a wealth tax. It will encourage work and have people pay according to their real financial status.

And put in place a massive bureaucracy to decide what an art collection is worth? Hard Pass. We want smaller government, not bigger.

[Quick Enough]

Originally Posted by eddie gein

Spare me....All a consumption tax would do is get conservatives whining about consumption taxes.

Spare me....all the CONSTANT whining for libs on EVERYTHING.

As they say, "If you CAN'T take it, DON'T dish it out!"

[ketchikanite]

Originally Posted by trobesmom

I thought so. In that case, I definitely would be golden, lol. I am an ad agency's worst nightmare.

Not true. In many states groceries are NOT exempt.

[Bobdreamz]

A Consumption Tax will affect the Poor way more.
If you think the Underground Economy is big now just wait and see what will happen if this is passed.
Products can be tracked when they are sold but not all services can be.

[Kracer]

Anything that reduces the IRS staff and insane penalties!

Lawyers write the tax code and always leave intentional and unintentional loopholes Using a template to determine tax is more equitable but has its drawbacks.

Tax revenues increased under trump when the tax break as small business increased. So as long as no one claims tax breaks hurt the taxpayers, a hybrid tax code would work well.

A flat tax is worth a try.

consider the uber wealthy hand over the most money to the government which does not generate money of its own. Next comes the gas and oil industry. With out those, the government would cease to exist.

Of course the amount of tax money required is based solely on what the government thinks they needs to provide themselves for re-election.

Reduce taxes by reducing government spending and tolerance of legal and illegal, fraud.

[hooligan]

Originally Posted by ukrkoz

Depends what is taxed as consumption.

This.

Reps to you, ukr!

[Loveshiscountry]

Would You Be In Favor Of Doing Away With The Income Tax - Yes

And Replacing It With A Consumption Tax - No

[Kentucky62]

I volunteer with an organization for the elderly and low income working people by doing their taxes every year.

Everyone's situation is different but the working poor and those getting by on SS with maybe a small pension or a little savings usually end up paying little to nothing in actual federal and in some cases depending on where you live little to no state taxes.

Many however are always on the financial cliff with it taking very little to push them over. Medicare and Medicade does not pay for everything, examples vision, dental. Supplemental insurance to cover the gaps is not cheap. Older women especially are at risk as their jobs were typically low paid pink collar, no pension , 401K and a small base of life time earnings to draw SS on.

A consumption tax for people in this group would be damaging depending on what is taxed. They spend their money on essentials, food, medicine, utilities, rent. I have clients that cut their pills in half and worry about making increasing rent payments on their trailer park pad vs utility payments.

So if the advocates for a consumption tax feel this is the way to go list what would be exempt from the tax. Lets leave the politics out of it.

The make up of this forum I would guess is on average better off than the people I see every year. If you don't see these people it can be all too easy to become dismissive of them and the issues they face looking out from our more comfortable bubbles.

I see a lot of "them" statements on this forum. Everyone should volunteer somewhere outside of their comfort zone this coming year, especially if your are physically able and it is safe for you. Usually it only means driving a few miles from your church or home. Learn for yourself what and who is out there, what is needed and how govt policy impacts them. Our volunteer programs lost a lot of good people this year as they depend on retirees to fill the need. Many can't come back as they suffer illnesses that put them at risk.

“A society is judged by how it treats and shows compassion for those who cannot protect or fend for themselves"

[remco67]

Basically you are asking for a VaT such as is used overseas, the biggest problem is not that it would effect poorer people disproportionally due to their income, the biggest problem is Government never gives up anything. We will end up with both a VAT and an Income tax.

Revenue is never the issue, its the spending and until we get ahold of that it doesn't matter.