User Tax Options

[*Steven*]

An increased tax on everything we buy, with the removal of the income taxes. This way the less you spend/buy, the less you're taxed. Also, people like Bill Gates who make say 200,000$ a year on their salary can't avoid the taxes any more.

Go.

[MissHygienic]

I don't think this is really debatable. The notion is just ridiculous. Tax issues are still issues, but if you want to speak realistically, you have to take into consideration of what America needs that require so much taxing. There needs to be a balance of taxing, as well, because otherwise citizens would get overwhelmed by the drastic increase in sales taxes.

If we were to get rid of income tax, how would you know if increasing sales tax will support our economy? Certain people have to live off by income taxes which includes accountants, agents, and tax lawyers. Theoretically, if it were abolished and you did raise sales tax, say, you were able to save 40 percent of your income to spend but the sales tax would also have to increase by 40 percent; therefore, a majority of transaction taxes would increase by that amount.

[*Steven*]

Sure taxes on items would go up, but if you're not a big spender then you don't get taxed as much.

How would you suggest we deal with the Rich avoiding taxes? The rich don't make simply what their salary says. They get stocks, benefits, paid cars, all sources of income that aren't taxed. A user tax would deal with this.

[jesusisthebestth...]

As much as I love the idea...I don't believe it will work. I don't have enough faith in the government to believe that they would make it easier on the "little people" or the "poorer people" with your user tax plan.

[MissFits]

I don't think any change would be necessary if our government would spend the money we give them responsibly.

Did these people ever get an allowance as children? I can handle money better than the f**king government.

[*Steven*]

Well if a user tax was enacted and income tax abolished, you would only pay tax when you bought things. It would also eliminate all the confusion in all the tax laws, and people would no longer have to spend stupid amounts of money just to get someone to figure out their taxes.

[jesusisthebestth...]

I don't think any change would be necessary if our government would spend the money we give them responsibly.

Did these people ever get an allowance as children? I can handle money better than the f**king government.

That is so true, you're not the only who feels that way. Sometimes I honestly believe that everyone who should run the country works at the car dealership or makes donuts or something.

[*Steven*]

I'm going to have to agree that things wouldn't be nearly as bad if the government managed their money better, but the chances of that are slim to none any time soon. The government hires a lot of people who wouldn't get hired by any other firm (imo because they want to reduce unemployment?). They're too dumb to manage money

Anyways, either way the government is going to tax us. With a user tax, taxes would be taken from people a little more evenly (imo).

[ersatz]

Or we could just remove the cap and have a flat rate and then people still won't be able to avoid taxes and we wouldn't be taxing the children who are trying to buy things.

[*Steven*]

Okay but what about the people who make millions and millions but their check only says 200 grand per year? The more they're making the less percentage of their income they're being taxed. I agree a flat rate would be nice but they're still avoiding taxes. Placing a user tax would make it considerably harder to avoid taxes.

[ersatz]

How would one still be avoiding taxes? Their entire income would be taxed, not just their salary...the same way that if someone wins the lottery, it's taxed; they don't get it all.

[*Steven*]

Company pays for house. Company pays for car. Company paid expenses. There are ridiculous ways of writing a house off as a business necessity.

[ersatz]

Then outlaw companies doing that. It's silly, anyway.

If you tax goods more, that applies the burden more to the poor. If a poor person and a rich person both want an iPod, and you tax it more, making the total price like, $300 as opposed to $250 (hypothetical), that's no big deal for the rich person, but for that poor person, that $50 more in taxes is a large burden. Sales tax accounts for like $3-4 on every purchase I make. As it is now, it already adds up to a lot for me, and it hurts. But someone who makes more money than me isn't going to care about that small amount.

[*Steven*]

But if the price of that were to go up, the income tax would be eliminated, and they would have that much more to spend.

I'll have more information on this tomorrow, I had a whole bunch on this written down that I need to make a more convincing point.

[kryogenix]

Then outlaw companies doing that. It's silly, anyway.

If you tax goods more, that applies the burden more to the poor. If a poor person and a rich person both want an iPod, and you tax it more, making the total price like, $300 as opposed to $250 (hypothetical), that's no big deal for the rich person, but for that poor person, that $50 more in taxes is a large burden. Sales tax accounts for like $3-4 on every purchase I make. As it is now, it already adds up to a lot for me, and it hurts. But someone who makes more money than me isn't going to care about that small amount.

FairTax, one example of a consumption tax scheme, grants a rebate to poor people, which makes the tax progressive.

[ersatz]

How often do they get that rebate?

This seems more complicated than just keeping an income tax and making a flat rate. Perhaps a couple of people here and there will get away with some money. It's not really that big of a deal.

[kryogenix]

How often do they get that rebate?

This seems more complicated than just keeping an income tax and making a flat rate. Perhaps a couple of people here and there will get away with some money. It's not really that big of a deal.

Monthly rebate.

You'd think so, but on the left is the current tax code, on the right is the fairtax.

[Uronacid]

I like the idea of a flat tax rate.

[*Steven*]

Yeah that's another thing. Americans wouldn't have to pay people to interpret something they are required by law to do.

[ersatz]

Monthly rebate.

You'd think so, but on the left is the current tax code, on the right is the fairtax.

Well, here's the length of what I'm proposing:

Every citizen will be taxed 10% on all income. ALL income.

.

[kryogenix]

Well, here's the length of what I'm proposing:

Every citizen will be taxed 10% on all income. ALL income.

.

Won't work, considering 10% is tax rate at the lowest tax bracket right now, and that people in the 95th percentile (who are responsible for over half of income tax revenue) are taxed at a higher rate.

[ersatz]

There's also an income cap (which is ludicrous). Remove the cap. That'll solve a lot of problems.