Why NOT to vote Republican

[catherine]

https://itep.org/fair-tax-plan-would...-from-wealthy/

meanwhile this national sales tax instead of all federal taxes and IRS would be abolished. I’ve read several articles about it. A big purchase like a car would cost Joe average much more. I don’t see how this would benefit the working middle class at all. If somebody has a different view I’d love to hear an explanation.

I am completely ignorant of most things that involve mathematics. I'm just trying to think of the things that would be taxable. It seems like a Consumption Tax. So people who buy the most stuff, pay the most tax. In theory, that's appealing to me. So, maybe it does impact the wealthy, but OTOH, how do you justify charging 30% extra for the basic things that the poor and middle class need?

Is this in any way similar to VAT taxes in Europe!
Would there be exceptions to these taxes--like not taxing food, for instance?

I'm interested in hearing other points of view on this. I haven't heard of this proposal. But if it was generated by the Church of Scientology, right away, I have to be skeptical

[Alan]

This idea has been proposed in each Congress for the past 30 years or so, sometimes by Republicans and sometimes by Democrats. It never goes anywhere, although I suppose it could lead to a productive conversation regarding the role of taxation and perhaps better ways to fund a government.

[Rogar]

I'm more a fan of a flat tax on income, but it would take some fancy marketing for any major change to the way we're taxed. I remember campaign promises to simplify income tax reporting so it could be done on a postcard. I confess to not knowing much about a national sales tax but I can picture it as discouraging spending to avoid taxes, which is generally not good for a capitalist economy.

[flowerseverywhere]

This idea has been proposed in each Congress for the past 30 years or so, sometimes by Republicans and sometimes by Democrats. It never goes anywhere, although I suppose it could lead to a productive conversation regarding the role of taxation and perhaps better ways to fund a government.

Good luck on any kind of productive conversation.

[flowerseverywhere]

I'm more a fan of a flat tax on income, but it would take some fancy marketing for any major change to the way we're taxed. I remember campaign promises to simplify income tax reporting so it could be done on a postcard. I confess to not knowing much about a national sales tax but I can picture it as discouraging spending to avoid taxes, which is generally not good for a capitalist economy.

I totally agree about spending. Our economy is about buying lots of stuff we think we need. It would hurt many producers

[rosarugosa]

I've always heard that sales tax is more regressive than income tax, which sounds totally logical to me. Spending as a % of income or even of total assets is going to be much higher for poorer people.

[LDAHL]

I am completely ignorant of most things that involve mathematics. I'm just trying to think of the things that would be taxable. It seems like a Consumption Tax. So people who buy the most stuff, pay the most tax. In theory, that's appealing to me. So, maybe it does impact the wealthy, but OTOH, how do you justify charging 30% extra for the basic things that the poor and middle class need?

Is this in any way similar to VAT taxes in Europe!
Would there be exceptions to these taxes--like not taxing food, for instance?

I'm interested in hearing other points of view on this. I haven't heard of this proposal. But if it was generated by the Church of Scientology, right away, I have to be skeptical

In general, a sales tax gets collected once at the retail level, while a VAT gets collected at each stage of the production process. Exempting certain commodities or services is one way to address the regressive concern. It can get complicated when you quibble over, say taxable prepared meals vs groceries. My State’s statues, for instance, devote more space to the definition of a sandwich than to municipal accounting standards. Another method you sometimes see is an annual or quarterly rebate meant to cover basic necessities.

I think a VAT or flat income tax with few exceptions is about as fair and simple as you can get. Income taxes offer the greatest scope for using the tax system to reward friends or punish enemies. I read California is looking at a wealth tax that would employ armies of bureaucrats to determine the value of art, unrealized gains and other items. Elizabeth Warren keeps making noises about a constitutionally questionable federal wealth tax.

[jp1]

Income taxes offer the greatest scope for using the tax system to reward friends or punish enemies.

I suspect there's an army of K street lobbyists who would say "hold my chardonnay, watch this" if they heard this statement.

[iris lilies]

In general, a sales tax gets collected once at the retail level, while a VAT gets collected at each stage of the production process. Exempting certain commodities or services is one way to address the regressive concern. It can get complicated when you quibble over, say taxable prepared meals vs groceries. My State’s statues, for instance, devote more space to the definition of a sandwich than to municipal accounting standards. Another method you sometimes see is an annual or quarterly rebate meant to cover basic necessities.

I think a VAT or flat income tax with few exceptions is about as fair and simple as you can get. Income taxes offer the greatest scope for using the tax system to reward friends or punish enemies. I read California is looking at a wealth tax that would employ armies of bureaucrats to determine the value of art, unrealized gains and other items. Elizabeth Warren keeps making noises about a constitutionally questionable federal wealth tax.

I welcome the State of California imposing the weath tax! I would like to see how that works.

There are European countries doing this and everything Euro is good.so yay, bring on the wealth tax—to the state of California.

[LDAHL]

I welcome the State of California imposing the weath tax! I would like to see how that works.

There are European countries doing this and everything Euro is good.so yay, bring on the wealth tax—to the state of California.

I understand Norway, Switzerland and Spain have recurring (ie not just at death) taxes on net worth. France and Italy have partial wealth taxes, I think on foreign residents or assets held outside the country.

A number of countries have tried and then discontinued it because it’s difficult to administer and incentivizes a certain level of gamesmanship.

My understanding of the California proposal was that it would be a tax on the worldwide assets of current and former residents.