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Originally posted by dryhumpA consumption tax is much more prefereable than an income tax according to most economists I've read.
What does everyone think? Is it a good idea? It seems like it would be a much better system of taxation. Certainly it would be easier to implement.
Consumption taxes encourage people to save and not buy useless things. Reducing income tax is an increases the incentive to work.
The caveat though is that the sales tax would be pretty high to offset the loss of revenue from the income tax.
This link is for you smart people that can actually pay attention for more than 9 seconds.
http://www.law.northwestern.edu/colloquium/tax/bankman.pdf
This link is for those of you who have ADD and don't like reading long things.
http://gregmankiw.blogspot.com/2006/06/consumption-vs-income-taxation.html
Originally posted by KazetNagorraagain, you can remove most lower income income tax rates to 0 and reduce the amount paid by the rich to a lower amount to keep the "progressive" concept in the tax system
Sales tax is nice and efficient, but it can't completely replace income tax because you need to tax the rich at a higher percentage than the poor.
Originally posted by uzlessYes, but this is not easily implemented. To do this you would require people below a certain threshold to identify themselves to remain exempt from tax, or they would have to keep track of everything they buy. This will get very bureaucratic very quickly.
again, you can remove most lower income income tax rates to 0 and reduce the amount paid by the rich to a lower amount to keep the "progressive" concept in the tax system
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Originally posted by KazetNagorra?? It's tracked through your income. you'd still file an income "tax" report. maybe give it a different name.
Yes, but this is not easily implemented. To do this you would require people below a certain threshold to identify themselves to remain exempt from tax, or they would have to keep track of everything they buy. This will get very bureaucratic very quickly.
Those under say 20K would get a refund up to a standard amount to bring them back above the state mandated poverty level, those people between 20K and say 100K would not get a refund but would not have to pay income tax, and those above say 100K would pay a certain amount of income tax as normal but at a lower rate than now.
You'd have to work out the tax bracket numbers but it's not that hard at all.
Originally posted by uzlessBut this simply boils down to a combination of sales tax and income tax.
?? It's tracked through your income. you'd still file an income "tax" report. maybe give it a different name.
Those under say 20K would get a refund up to a standard amount to bring them back above the state mandated poverty level, those people between 20K and say 100K would not get a refund but would not have to pay income tax, and those above say 100K ...[text shortened]... an now.
You'd have to work out the tax bracket numbers but it's not that hard at all.
Originally posted by MelanerpesYes, it is almost like leasing (in the form of taxes) the land after you buy it. Kind of makes me think it is like communism except you have to make a big down payment and risk losing it if you don't pay your (lease) taxes.
the tax that everyone seems to hate is the property tax -- at least that seems to be the case in New Jersey.
school districts in affluent communities can collect more of this tax because the property is highly valued -- the poorest districts get a lot of money directly from the state -- and the districts in between have to make a lot of hard choices and envy all the money going to the affluent and poor districts.
Originally posted by Sam The ShamDon't you see Sam, rich folk paying five times more through sales tax is not enough for envy artists like KN, rich folk must be whipped and bought down and punished for their wealth.
Don't the rich buy a whoooole lot more stuff? that'd amount to the same thing.
Why?
Because KN feels he has superior financial powers than those that have actually amassed some wealth.
Originally posted by WajomaNo, because that improves the general wellbeing of a society and creates wealth.
Don't you see Sam, rich folk paying five times more through sales tax is not enough for envy artists like KN, rich folk must be whipped and bought down and punished for their wealth.
Why?
Because KN feels he has superior financial powers than those that have actually amassed some wealth.