It seems like when people pay income tax, they file taxes use loopholes and get their tax money back.
With sales tax, we buy it - pay tax on it and forget it.
Wouldn't this be more fair?
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It seems like when people pay income tax, they file taxes use loopholes and get their tax money back.
With sales tax, we buy it - pay tax on it and forget it.
Wouldn't this be more fair?
Many of us do pay sales tax in addition to income tax, but I can see your point. Unfortunately the rate would have to be pretty high to raise enough funding.
Look I agree that there are too many deductions and credits in the tax system. Even the current rebate deal is a disaster.
The problem is, the government spends money and has to come up with it. If a sales tax was universally enforced (it wouldn't be) and I had been paying it from day 1, as a middle class person I'd be happy with it. At this point of my life, I *don't* spend all my money on necessities...but I have already paid taxes on a lot of my income in the form of ROTH IRAs. All sales tax only systems would cause that money to be taxed twice.
Many cities and counties issue tax exempt bonds to fund projects. The attractiveness of these bonds wouldn't be there if one didn't pay income tax, so these would have to be added to the sales tax as well.
I doubt people who *do* spend all their money on sales tax would like to see a 30%-40% sales tax. The solution to that is to pre-bate them the equivalent tax money on what the government thinks someone could live on. Personally, I hate having the government tell me what I should spend my money on.
The sales tax would have to be high to make up for the income tax.
Tell the parents of 2 kids, who make $25K a year and right now don't pay income tax and get an Earned Income Credit, how "fair" this new tax is when they end up around $8000 a year in the hole over it. I'm sure they'll agree with you.
It's real hard to define "fair" when it comes to tax. But our current income tax is progressive, which means that on the whole, the people with more income pay a higher percent in taxes. The sales tax wouldn't do that. It's great for the rich, not so good for everyone else.
not really I dont see what you mean as i already pay sales tax on everything and i pay income tax !! connecticut sucks that way !!!
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