Income tax v sales tax | Page 2 | TigerDroppings.com
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doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
8244 posts

re: Income tax v sales tax

quote:

That is not correct. The 6% bracket begins at $50,000, not $100,000.


We were both right, but here are the latest brackets beginning in 2009:

reflected as follows:

reflected as follows:




Rate of tax Effective January 1, 2009

Single, married filing separately, or head of household:

2 percent First $12,500
4 percent Next $37,500
6 percent Over $50,000

Married filing jointly or qualified surviving spouse:
2 percent First $25,000
4 percent Next $75,000
6 percent Over $100,000


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austingator
Florida Fan
austin
Member since Jan 2009
6369 posts

re: Income tax v sales tax
I prefer sales tax to property tax.

I have a problem with the concept that you never really own your house, even if it is paid for. Do we really believe in private property in this country?


The Easter Bunny
Georgia Tech Fan
Member since Jan 2005
42623 posts
Online

re: Income tax v sales tax
quote:

So, then, it will increase taxes for pretty much everybody except those who make a high enough income to save more on income taxes than they spend on additional sales taxes. Looks like the Dems pegged Jindal correctly after all. What a shocker.


You don't have to spend all of your income on taxable goods. At least now you have some choice on tax burden


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doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
8244 posts

re: Income tax v sales tax
quote:

So, then, it will increase taxes for pretty much everybody except those who make a high enough income to save more on income taxes than they spend on additional sales taxes. Looks like the Dems pegged Jindal correctly after all. What a shocker.


If your earned income is 10,000 dollars now, you pay 200 bucks in income taxes.

What you do with the balance of the money is up to you.

If Jindal's plan passes you would not pay any income tax; thus saving 200 dollars.

To spend AN ADDITIONAL 200 dollars in sales taxes at the higher rate(plus 1.8%) you would have to spend $11,111.00 OR MORE THAN WHAT YOU HAD IN EARNED INCOME.

Now this is not impossible(earned income is income after deductions, etc); but it is highly unlikely.


doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
8244 posts

re: Income tax v sales tax
quote:

Tennessee has no income tax and a 7% state sales tax...and a law that says cities can't have more than 2.75%, so no tax is ever more than 9.75%. And we have property taxes.


I believe Tennessee is considered a low tax state like Texas.


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BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
21656 posts

re: Income tax v sales tax
quote:

I believe all homeowners should pay a little for basic services


What basic services am i receiving from the gov't? Are you a home owner?


doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
8244 posts

re: Income tax v sales tax
quote:

What basic services am i receiving from the gov't? Are you a home owner?


I own my home.

I receive sewer service, police protection, fire protection, and the govt. taxes care of overall infrastructure such as drainage and upkeep of the roads/streets in my area.

I call those basic services and I think everyone should pay something that owns property should pay something for them.



BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
21656 posts

re: Income tax v sales tax
quote:

You don't seem to realize that the local sales tax rate already exceeds the state rate in much of Louisiana. The Baton Rouge rate is 5% on top of the proposed state rate of 5.8%. You're right about one thing: Stupid people gonna stupid.


LINK

I'm sorry, or you saying a 1.8% rise in sales tax is worse off than the already imposed state income tax?

I'm paying about 3.8% state income tax every paycheck. How is 3.8 < 1.8?


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BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
21656 posts

re: Income tax v sales tax
quote:

I receive sewer service


I pay for mine. If you are talking city infrastructure sewer, i pay for that too in my taxes.

quote:

police protection, fire protection, and the govt. taxes


I pay for that in my taxes. These are all things that are levied on to us by the state gov't already.

quote:

I call those basic services and I think everyone should pay something that owns property should pay something for them


Non-property owners also receive police/fire/infrastructure benefits as well.

I was under the impression, from whoever posted it, that said they are in favor of higher property taxes as long as they get services, etc... that we already pay for and receive those services. So it's not like we are getting additional services non-home owners get.

Maybe i'm misinterpreting the point of the post.


TheDiesel
LSU Fan
Houston via Baton Rouge
Member since Feb 2010
2505 posts

re: Income tax v sales tax
Texas also has a sales tax maxiumum that local areas can collect that pretty much makes sales tax uniform across the state.


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the LSUSaint
LSU Fan
Member since Nov 2009
5209 posts

re: Income tax v sales tax
quote:

If your earned income is 10,000 dollars now, you pay 200 bucks in income taxes.


This group is most likely receiving government aid as well. So lets not act like all they have to spend is the 10000 minus the $200.

I'm just amazed that we make a decision even including that poverty level into the conversation. Their lives are very important and I have deep sympathy for those in need, but I will not use them as an example when trying to get my state out of severe debt!


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doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
8244 posts

re: Income tax v sales tax
quote:

I was under the impression, from whoever posted it, that said they are in favor of higher property taxes as long as they get services, etc... that we already pay for and receive those services. So it's not like we are getting additional services non-home owners get


I'm in favor of all property owners paying for a little for basic services by paying property taxes.

Some people do not because of homestead exemptions.

I think everyone who owns property could pay at least a few hundred dollars in property taxes. I believe right now some pay little or none.



Queen
LSU Fan
383 miles from Death Valley
Member since Nov 2009
2780 posts

re: Income tax v sales tax
quote:

I prefer sales tax to property tax.


Do you prefer property tax to sales tax?

Seems that the accepted way to do something like this is to have two forms of taxation, take your pick between property, sales or income.

To layabout re: the local sales taxes being higher already than the state level - I feel like if this is going to work they are probably going to lobby to get rid of the homestead exemption and let the cities levy a property tax. If it isn't that way now or right when this would start, it probably will be before it's all said and done.


BayouBndt
USA Fan
Shreveport
Member since Dec 2007
3101 posts

re: Income tax v sales tax
I am starting to think we should do away with the federal income tax and go to a sales tax. Everybody pays that way. Seems like a fair system to me.


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Puck82
LSU Fan
Baton Rouge
Member since Mar 2009
13953 posts

re: Income tax v sales tax
quote:

Some people do not because of homestead exemptions.


Just because you file for homestead exemption doesn't mean you do not pay property tax. You are just getting a break on the amount you do pay.
I have homestead exemption and already pay well more than a couple hundred of dollars in property tax.

This post was edited on 3/21 at 9:24 am


doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
8244 posts

re: Income tax v sales tax
quote:

Just because you file for homestead exemption doesn't mean you do not pay property tax. You are just getting a break on the amount you do pay. I have homestead exemption and already pay well more than a couple hundred of dollars in property tax


I believe in some places homes valued at under 75K pay no property taxes, or only some of the millages.

If your home is valued at over 75K then you do pay.

I'm just saying that every home uses basic services of some sort, and should pay something to cover these costs to govt. I'm not saying that should be the only state/local tax.

I'd go with a sales tax on purchsed goods except food, and prescription drugs. The state should limit the sales tax total to 10%

I'd go with a property tax where all property owners pay on the first 10,000 or so of value, and then are exempt for the next 50,000 or so and then you pay more if the home is valued at more.

I think the state should get out of the income tax business.

I'd get out of the deduction business too. I find it hard to believe all these deductions the state hands out really help economic growth all that much.


Bear Is Dead
LSU Fan
Monroe
Member since Nov 2007
3992 posts
Online

re: Income tax v sales tax
What basic services are you talking about? You pay for water, sewer, trash in excess of your property taxes. You dont really get anything (govt services)for your property taxes that you wouldnt get with sales or income tax.


Bear Is Dead
LSU Fan
Monroe
Member since Nov 2007
3992 posts
Online

re: Income tax v sales tax
quote:

I'd get out of the deduction business too. I find it hard to believe all these deductions the state hands out really help economic growth all that much.

You dont understand deductions.


doubleb
LSU Fan
Baton Rouge
Member since Aug 2006
8244 posts

re: Income tax v sales tax
quote:

You dont understand deductions.


What's there to understand?

The govt. picks winners and losers. Winners get tax breaks, losers make up the difference.

Why should one type of business, company, or developer get a tax break over another?

Now I'm not talking economic incentives like they do with some of these mega deals, but tax breaks.


Puck82
LSU Fan
Baton Rouge
Member since Mar 2009
13953 posts

re: Income tax v sales tax
quote:

What basic services are you talking about? You pay for water, sewer, trash in excess of your property taxes. You dont really get anything (govt services)for your property taxes that you wouldnt get with sales or income tax.


This. The only service I do not directly pay for is the use of roads. I pay that indirectly through sales tax on gas.


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