Why not tax goods and services rather than individual incomes?
This way the 1% or 2% can be taxed based on there purchases and the working person can free up his or her paycheck for savings, investments reviving the economy etc. etc.
This way the 1% or 2% can be taxed based on there purchases and the working person can free up his or her paycheck for savings, investments reviving the economy etc. etc.
bob
An interesting FACT is that our most productive eras have all featured relatively high taxes on top earners. Low taxes on top earners has always led to recession and depression. The fact is that taxing low income workers slows the economy as they have less to spend. taxing high income workers does not slow the economy because they will spend virtually the same amount. It doesn't matter how low or how you tax a minimum wage worker he will not have money freed up for "savings, investments and reviving the economy." That is why the conservative agenda has always failed. It is based on pipe dreams rather than on reality.
cat lover
That is precisely what a value added tax does. It taxes goods at each stage of production. That can be a fair tax, if there are exemptions made for low income people who spend almost all their money on food, clothing, etc. But it is not at 1% or 2%. In the US, it would have to be more like 23% to replace the income tax and bring in the same amount of revenue. But that would also be a huge gift to wealthy individuals, since they don't spend 100% of their income on necessities.
ceron
you're nicely suited on all counts, different than the Fed does not enable it because of the fact it would nonetheless could own loan the government the money they needed to function and then lose the extra money the tax payer will pay in. yet differently is to alter the tax code and bypass to a flat tax around the board. If we had a flat tax fee at of 17 to 22% on all earnings without deductions, they might make extra money than they do now, with the midsection earnings human beings wearing the load. The state did no longer have a state earnings tax as quickly as I lived there interior the '80's and by using sales and vacationer tax in basic terms that they had various the final roads and colleges, hearth and police and reserves than the different state, proving that a state does not desire the earnings tax. basically previously I moved to Texas, I lived in Kentucky and that that they had earnings tax and an identical sales tax as Texas yet had various the lesser saved up roads and virtually no reserves. This proves that an earnings tax is the lesser area of a sales base.
The Original Liberal
Your tax idea is just a huge tax hike on the poor and an enormous tax cut for the rich.
Taking money away from those who spend most of their incomes on consumption (the poor) will seriously hurt the economy.
?
We already do. An increase across the board would only harm those such a measure was taken to protect as those with a meager salary don't lose much of it to taxes. It's a stupid idea.