30% national sales tax?
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@Jolly said in 30% national sales tax?:
With enough money or explosives, anything can happen.
I want them to blow me, not blow me up.
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I wonder what percentage of renters in the USA could afford a 30% hike on their rent, even with no federal income tax.
You were warned.
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@Mik said in 30% national sales tax?:
Its possible to design progressive brackets that don’t penalize as income increases. To wit:
Up to 50,000, tax is 15%. On the next 25,000 you pay 20%, and so on.
That’s already how the federal income tax is assessed, and has been for a long time. Hence the word “margin” in the term “marginal tax rate.”
Under current brackets if you made 75,000 you would pay 20% on all of it.
Is that how Ohio’s income tax works?
@Axtremus said in 30% national sales tax?:
@Mik said in 30% national sales tax?:
Its possible to design progressive brackets that don’t penalize as income increases. To wit:
Up to 50,000, tax is 15%. On the next 25,000 you pay 20%, and so on.
That’s already how the federal income tax is assessed, and has been for a long time. Hence the word “margin” in the term “marginal tax rate.”
Under current brackets if you made 75,000 you would pay 20% on all of it.
Is that how Ohio’s income tax works?
You're right on that. So how can the progressive brackets be punitive? As you make more, yes, taxes take more of that portion, but your income still rises.
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A national sales tax has the potential to be simpler and more efficient than an income tax, as it would only apply to consumption rather than income. This could make compliance and enforcement easier and potentially reduce the need for a large and complex tax code. Additionally, a sales tax may be less susceptible to evasion and could potentially raise more revenue from tourists and from high-income individuals who consume a lot.
On the other hand, a national sales tax would likely be regressive, meaning that it would disproportionately affect low-income households, as they spend a larger portion of their income on consumption than high-income households. This could be mitigated by providing rebates or other forms of relief to low-income households, but that would increase the complexity of the tax system.
An income tax, on the other hand, is generally considered to be progressive, as it taxes higher earners at a higher rate. This can help to reduce income inequality. Income tax also allows for deductions and credits that can be used to incentivize certain behaviors or to provide relief to certain groups of taxpayers. However, income tax systems can be complex and difficult for individuals and businesses to comply with, and enforcement can be challenging.
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I wonder what percentage of renters in the USA could afford a 30% hike on their rent, even with no federal income tax.
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I wonder what percentage of renters in the USA could afford a 30% hike on their rent, even with no federal income tax.
@jon-nyc said in 30% national sales tax?:
I wonder what percentage of renters in the USA could afford a 30% hike on their rent, even with no federal income tax.
Well, the average renter would have 15% greater income since it wasn’t being taxed, and the market should drive down rental rates equivalently since the landlord is not paying income taxes or corporate taxes…
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I’m in the middle of working on my taxes right now. The Fair Tax certainly sounds good right now…
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Yeah and when you're in the middle of shopping for a house in Loudon county the income tax would seem like a great idea.
@jon-nyc said in 30% national sales tax?:
Yeah and when you're in the middle of shopping for a house in Loudon county the income tax would seem like a great idea.
Maybe they should give us all the choice, like Amazon do with their credit card. We can choose whether to spend the year paying too much income tax or too much sales tax, and then it resets on New Years' Eve.
