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What would you exempt under a national sales tax?
Posted on 12/20/24 at 9:11 am
Posted on 12/20/24 at 9:11 am
Consumption taxes seem to be the tax du jour of the OT these days, so let’s have a thought exercise.
Say we eliminate the federal income tax in favor of a national sales tax. The rate is set at 20%, which would be a minimum and would likely be higher imo. Remember, under this model in the rest of the world goods and services are subject to the tax, unlike the US
What items would you set as exempt? I think we can all agree that things like insurance, basic health care, and groceries are exempted. What else? And be realistic, the government still has to be funded so keep that in mind.
Also, how would you pay the tax? $4k when you bought a car, 1.5k when you need an AC repair, ect, ect. Unlike withholdings, these are due upon receipt not accrued over the year. Are you good with financing tax payments?
Say we eliminate the federal income tax in favor of a national sales tax. The rate is set at 20%, which would be a minimum and would likely be higher imo. Remember, under this model in the rest of the world goods and services are subject to the tax, unlike the US
What items would you set as exempt? I think we can all agree that things like insurance, basic health care, and groceries are exempted. What else? And be realistic, the government still has to be funded so keep that in mind.
Also, how would you pay the tax? $4k when you bought a car, 1.5k when you need an AC repair, ect, ect. Unlike withholdings, these are due upon receipt not accrued over the year. Are you good with financing tax payments?
This post was edited on 12/20/24 at 9:18 am
31
Posted on 12/20/24 at 9:12 am to Mingo Was His NameO
Nothing really, the poors need to pay their fair share.
Posted on 12/20/24 at 9:13 am to Strannix
Food
Posted on 12/20/24 at 9:16 am to Mingo Was His NameO
Cocaine and hookers
Posted on 12/20/24 at 9:17 am to Mingo Was His NameO
Nothing, it's not the governments job to pick winners and losers, even industry by industry.
Posted on 12/20/24 at 9:19 am to Mingo Was His NameO
Well, this forum is the only place on the internet that's even discussing the possibility of a national sales tax. So I somehow doubt it is going to happen.
Posted on 12/20/24 at 9:20 am to Mingo Was His NameO
quote:
Also, how would you pay the tax? $4k when you bought a car, 1.5k when you need an AC repair, ect, ect. Unlike withholdings, these are due upon receipt not accrued over the year. Are you good with financing tax payments?
I'm assuming tax would be paid up front and the rest financed in that scenario.
Posted on 12/20/24 at 9:20 am to BHTiger
quote:
Food
I would not exempt any junk food or carbonated soft drinks
Posted on 12/20/24 at 9:21 am to Jcorye1
quote:
I'm assuming tax would be paid up front and the rest financed in that scenario.
So the tax is 20% and now the total cost of the purchase is higher because there’s more financing cost. In this scenario the total purchase price has gone from $5k in todays world to $8k or more
This post was edited on 12/20/24 at 9:22 am
Posted on 12/20/24 at 9:23 am to Mingo Was His NameO
Guns and ammo. The government can't tax rights.
Posted on 12/20/24 at 9:25 am to Mingo Was His NameO
Under the FairTax plan legal citizens gets a rebate ( prebate)every month that basically compensates for tax paid on basics.
Posted on 12/20/24 at 9:25 am to Mingo Was His NameO
Food and guns
Posted on 12/20/24 at 9:26 am to Jcorye1
quote:
Nothing, it's not the governments job to pick winners and losers, even industry by industry.
Just imagine all the industries that currently operate on less than 10% margin.
You just added 20-30% onto the cost of that item. All of those items are now economically unviable.
ETA: Also a gigantic number of homeowners are now underwater overnight because sellers will be eating that tax.
Congrats on the birth of your new child. It was a little touch and go there because they decided to come 5 or 6 weeks early, but they got amazing care in the NICU. Now before you go and tend to your wife and new baby, will you be paying the $10,000 tax bill by check, card or cash?
This post was edited on 12/20/24 at 9:41 am
Posted on 12/20/24 at 9:33 am to Mingo Was His NameO
quote:
things like insurance, basic health care, and groceries are exempted
Wouldn’t be all groceries. Prepared food, junk food, sugary drinks…should not be tax free. Of course, I’d also want to do away with food stamps and go back to food pantries, but I don’t think the toothpaste is going back in that tube
Posted on 12/20/24 at 9:34 am to Mingo Was His NameO
Tax discussions usually deteriorate because at its core, how you view taxes is all based on what you think is fair. And, as most adults know, there is no such thing as a universal definition of "fair" (nor does it exist for real outside of our social constructs. certainly not in nature.)
Labor being taxed more than capital gains is unfair in my mind.
Would be nice for essentials (bread, milk, eggs, etc) to be tax free.
That being said, if you look at state tax rolls and what the percentage is of income tax being paid by income level, you would want some serious changes. It just isnt sustainable going forward and will only lead to the populist uprising that is percolating in this country right now.
Labor being taxed more than capital gains is unfair in my mind.
Would be nice for essentials (bread, milk, eggs, etc) to be tax free.
That being said, if you look at state tax rolls and what the percentage is of income tax being paid by income level, you would want some serious changes. It just isnt sustainable going forward and will only lead to the populist uprising that is percolating in this country right now.
Posted on 12/20/24 at 9:36 am to Mingo Was His NameO
I think a high sales tax would lead to price inflation on exempt items.
Posted on 12/20/24 at 9:37 am to Mingo Was His NameO
Shouldn't have to have an item that's been taxed once already be taxed again. For example, If the national sales tax were already implemented today. I buy a car from a dealership tomorrow, and decide to sell it back to the dealership, then the next person who now buys that used car from the dealership should not have to pay taxes on it, since the tax was already paid by me for that car.
Posted on 12/20/24 at 9:38 am to ugasickem
quote:
For example, If the national sales tax were already implemented today. I buy a car from a dealership tomorrow, and decide to sell it back to the dealership, then the next person who now buys that used car from the dealership should not have to pay taxes on it, since the tax was already paid by me for that car.
The tax has been paid on that transaction. Sales tax is a transaction tax. When you sell it, there’s another transaction
Posted on 12/20/24 at 9:38 am to Weekend Warrior79
quote:
Wouldn’t be all groceries. Prepared food, junk food, sugary drinks…should not be tax free.
I agree but good luck getting most politicians to vote for that. Big cola and the junk food cartel would shovel millions of dollars in the politicians pockets to prevent that from happening. You would actually hear certain politicians claim it would be racist to do this since it would be unfair to their poor constituents who can only afford to eat fudge rounds and drink Pepsi cola.
Posted on 12/20/24 at 9:39 am to Mingo Was His NameO
I like the way the fair tax approaches it. Have a per person consumption exemption which is rebated periodically.
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