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Message
Would you be in favor of eliminating the federal income tax & replacing it with sales tax?
Posted on 9/23/24 at 4:31 pm
Posted on 9/23/24 at 4:31 pm
Many economists have suggested that this would be a superior taxation system. People would be taxed only when spending. It could discourage frivolous spending by individuals and encourage them to save.
It could also greatly simplify our tax code and eliminate millions of dollars of administrative expenses that governments and businesses have to spend to administer the tax code and figure out complex tax planning. There would be no deductions, exemptions, special credits, etc., and so it would simplify personal tax returns and save time and money for people. It could be better for the poor because they could avoid paying taxes by just saving their money. Of course there would need to be some exceptions for food items and other necessities.
I would be willing to accept a 10-15% sales tax or perhaps even higher if it meant eliminating income taxes.
It could also greatly simplify our tax code and eliminate millions of dollars of administrative expenses that governments and businesses have to spend to administer the tax code and figure out complex tax planning. There would be no deductions, exemptions, special credits, etc., and so it would simplify personal tax returns and save time and money for people. It could be better for the poor because they could avoid paying taxes by just saving their money. Of course there would need to be some exceptions for food items and other necessities.
I would be willing to accept a 10-15% sales tax or perhaps even higher if it meant eliminating income taxes.
This post was edited on 9/23/24 at 4:42 pm
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Posted on 9/23/24 at 4:36 pm to cbree88
Yes as long as ebt is taxed
When you go to the grocery store the only people you see buying anything are buying it with an ebt card
When you go to the grocery store the only people you see buying anything are buying it with an ebt card
Posted on 9/23/24 at 4:55 pm to cbree88
quote:
Many economists have suggested that this would be a superior taxation system. People would be taxed only when spending. It could discourage frivolous spending by individuals and encourage them to save. It could also greatly simplify our tax code and eliminate millions of dollars of administrative expenses that governments and businesses have to spend to administer the tax code and figure out complex tax planning. There would be no deductions, exemptions, special credits, etc., and so it would simplify personal tax returns and save time and money for people. It could be better for the poor because they could avoid paying taxes by just saving their money. Of course there would need to be some exceptions for food items and other necessities. I would be willing to accept a 10-15% sales tax or perhaps even higher if it meant eliminating income taxes.
Heck yeah I would. I paid 100k in Fed and about 18k to 19k LA state tax.
Posted on 9/23/24 at 5:00 pm to cbree88
quote:
People would be taxed only when spending. It could discourage frivolous spending by individuals and encourage them to save.
This is why it will never happen. The government does not want you to save money. They want you to spend it.
Hence why inflation is "good" in modern economic theory. They want the cash to be constantly moving with no incentive to hold it.
Posted on 9/23/24 at 5:03 pm to I Love Bama
quote:
This is why it will never happen. The government does not want you to save money. They want you to spend it.
I agree with this, unfortunately. It won’t happen.
quote:
Hence why inflation is "good" in modern economic theory
I’d like to qualify this by saying that small levels of inflation are normal and good. What we saw in 2022-2024 is hyperinflation, and it’s bad for everyone.
Posted on 9/23/24 at 5:06 pm to cbree88
quote:
I’d like to qualify this by saying that small levels of inflation are normal and good.
Normal, yes. Good? Debatable. I'm curious to hear your argument other than what I stated above.
Posted on 9/23/24 at 5:17 pm to cbree88
unfortunately 10-15% sales tax wouldn't be nearly enough to keep the country running. example you currently make $100k federal and state tax probably amount over 20% but for simplicity say $20k in tax. So for that to be equaled out you have to spend way more than you made if tax is 10-15%. so unless the government magically cuts spending don't see how sales tax only at 10-15% would work.
Posted on 9/23/24 at 5:30 pm to I Love Bama
quote:
Normal, yes. Good? Debatable. I'm curious to hear your argument other than what I stated above.
Money printing is how the government justifies its existence. Aren’t you a patriot?
Posted on 9/23/24 at 5:40 pm to el Gaucho
quote:anarchist
Aren’t you a patriot?
Posted on 9/23/24 at 5:55 pm to cbree88
this or a flat tax rate for everyone—say 5% but it would kill a ton of jobs.
Posted on 9/23/24 at 6:11 pm to cbree88
Depends on the tax rate and if the government adds additional hidden fees on commodities.
Geaux fighting tigers
Geaux fighting tigers
Posted on 9/23/24 at 6:25 pm to cbree88
100%. Will never happen, though
Posted on 9/23/24 at 7:09 pm to cbree88
quote:
Would you be in favor of eliminating the federal income tax & replacing it with sales tax?
Yes, but with caveats.
I would want to see it passed with an Amendment that stipulates a specific percentage as well as states that it covers all sales (ie: regardless of purchaser income level). This would remove the ability for Congress to play election games with it.
The big issue with moving to a national sales tax over income tax is that while it would cut a tremendous amount of costs out of the federal government (through not needing nearly as many IRS employees), it would also greatly cut down on the amount of revenue going into the federal coffers. For example, total dollar sales for 2023 was just over $27T. Going with a 10%-15% tax would mean revenues of $2.7T-$4.05T, meanwhile the federal government spent $6.1T last year (with $1.6T of that being in deficit), meaning the federal government would have spent roughly 2x more than it took in via revenues.
All that said, another caveat would have to be a balanced budget amendment or else the federal government would likely crash the currency within 5 years.
Posted on 9/23/24 at 7:17 pm to TheOcean
It'll never happen because it becomes very transparent when the government tries to raise your taxes. They don't want you to know how much in taxes they're raping you for.
Also, special interest companies in the frivolous spending category would sell their kidneys to prevent it from happening.
Also, special interest companies in the frivolous spending category would sell their kidneys to prevent it from happening.
Posted on 9/23/24 at 7:24 pm to cbree88
No, this kind of tax system would adversely negatively affect low-income the most since their primary tax is on consumer purchases. This would increase homelessness overall and lead to additional taxes on the ones who can pay.
Posted on 9/23/24 at 7:43 pm to cbree88
No. Aside from being regressive, sales tax is a huge weight on small businesses. The economy would tank.
Posted on 9/23/24 at 8:33 pm to cbree88
Yes. Obligatory FairTax mention.
Posted on 9/23/24 at 8:40 pm to TejasHorn
No it wouldn’t
Posted on 9/23/24 at 8:45 pm to cbree88
10000000000%
It is the only true "fair tax."
Also, you would collect tax revenue from non-citizens.
It is the only true "fair tax."
Also, you would collect tax revenue from non-citizens.
Posted on 9/23/24 at 8:46 pm to Bard
It would go a long way toward curtailing Congress from playing God with their lobbyist sycophants by doling out tax preferences to favored patrons.
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