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Sales Tax?
Aug. 14th, 2004 11:49 pmOK, so by now everybody's heard of the movement to replace our national income tax with a national sales tax, and basically abolish the IRS (though I think someone would still be needed to oversee the collection of all the other taxes - or maybe it replaces all taxes or something - I'm sure details are in a link I don't currently have).
Anyway, the basic plan is to implement a 29% sales tax on all new goods sold in the US, other than groceries (so, like most state sales taxes, it will apply to restaurants, but not grocery stores).
I have, on many occasions, heard that such an idea would be a regressive tax, and therefore a Bad Thing.
Why would that be?
It seems to me it would better tax the rich more than our current system, insomuch as the rich tend to buy, and more expensive, stuff. A tax that, rather than using expensive and confusing tax shelter properties and businesses, could be avoided simply by not buying so much.
Yes, it will raise the costs of everything you buy. But, since you'll have more money, it kind of evens out. 29% added to everything I buy sounds a lot better than the current 38% taken from everything I earn. This would be especially good for people like me, who swing back and forth from being very rich and very poor. During my poor phases, I could just buy less stuff, and not have to pay as much taxes. Though, it seems that it would work quite well for normal people too.
It would also simplify taxes, of course, as you pay them little by little throughout the year, instead of trying to guess how much you'll pay, then spend days gathering up all your information to fill out a series of forms which you know you could always save more money by filling them out better...
Anyway, any thoughts?
Anyway, the basic plan is to implement a 29% sales tax on all new goods sold in the US, other than groceries (so, like most state sales taxes, it will apply to restaurants, but not grocery stores).
I have, on many occasions, heard that such an idea would be a regressive tax, and therefore a Bad Thing.
Why would that be?
It seems to me it would better tax the rich more than our current system, insomuch as the rich tend to buy, and more expensive, stuff. A tax that, rather than using expensive and confusing tax shelter properties and businesses, could be avoided simply by not buying so much.
Yes, it will raise the costs of everything you buy. But, since you'll have more money, it kind of evens out. 29% added to everything I buy sounds a lot better than the current 38% taken from everything I earn. This would be especially good for people like me, who swing back and forth from being very rich and very poor. During my poor phases, I could just buy less stuff, and not have to pay as much taxes. Though, it seems that it would work quite well for normal people too.
It would also simplify taxes, of course, as you pay them little by little throughout the year, instead of trying to guess how much you'll pay, then spend days gathering up all your information to fill out a series of forms which you know you could always save more money by filling them out better...
Anyway, any thoughts?
