30% national sales tax?
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@jon-nyc said in 30% national sales tax?:
@LuFins-Dad said in 30% national sales tax?:
It would also close the loop on a lot of people that evade taxes through cash transactions. 10% cash discounts from contractors become a thing of the past…
How so? Instead of the motivation coming from the contractor who doesn’t want to pay income taxes it would come from the homeowner who doesn’t want to pay 30% extra.
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There’s no benefit to the contractor to offer the discount. A negotiation is to find mutual benefit. There is no mutual benefit there.
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The contract will be the one paying the sales taxes on the materials. They will pass that costs along…
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Unless I’m mistaken, there will not be a sales tax on sevice costs/labor.
@LuFins-Dad said in 30% national sales tax?:
- Unless I’m mistaken, there will not be a sales tax on sevice costs/labor.
The American economy is over 75% "services." After you exempt 75% of the economy from taxes, factor in the exclusions of "essentials" and/or advance credits for the low income folks ... what tax rate you figure will need to apply to the remaining less than 25% of the "goods" economy to make the numbers work?
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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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
“I am fond of pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.” ~Winston S. Churchill
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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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
@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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
Absolutely, there can always be changes made. The flat rate is an extreme solution that doesn't sense since apart from anything else it's politically impossible to implement.
I was only joking
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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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
@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?
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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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
Absolutely, there can always be changes made. The flat rate is an extreme solution that doesn't sense since apart from anything else it's politically impossible to implement.
@Doctor-Phibes 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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
Absolutely, there can always be changes made. The flat rate is an extreme solution that doesn't sense since apart from anything else it's politically impossible to implement.
I think we are to a point where only an extreme solution will work. Our tax code has become byzantine and indecipherable by the people who wrote it and the people who enforce it.
Flat tax or national VAT...And right now, I'm leaning towards no exceptions. The world will not end. We can survive and prosper, because when people know the rules, they'll play to win.
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@Doctor-Phibes 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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
Absolutely, there can always be changes made. The flat rate is an extreme solution that doesn't sense since apart from anything else it's politically impossible to implement.
I think we are to a point where only an extreme solution will work. Our tax code has become byzantine and indecipherable by the people who wrote it and the people who enforce it.
Flat tax or national VAT...And right now, I'm leaning towards no exceptions. The world will not end. We can survive and prosper, because when people know the rules, they'll play to win.
@Jolly said in 30% national sales tax?:
@Doctor-Phibes 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. Under current brackets if you made 75,000 you would pay 20% on all of it. It’s fixable.
Absolutely, there can always be changes made. The flat rate is an extreme solution that doesn't sense since apart from anything else it's politically impossible to implement.
I think we are to a point where only an extreme solution will work. Our tax code has become byzantine and indecipherable by the people who wrote it and the people who enforce it.
Flat tax or national VAT...And right now, I'm leaning towards no exceptions. The world will not end. We can survive and prosper, because when people know the rules, they'll play to win.
I would really really like to sleep with a bunch of supermodels. That's not going to happen either.
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With enough money or explosives, anything can happen.
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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.
