Agreed fully.
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Their approach to sales tax is decent, but I didnât like that it covered both income tax & SS tax in the 23%. This is making it a harder sell than if they kept SS out for now. They also are exempting the 1st ~$18k (or whatever the poverty rate is) from sales tax. This is good but may be more complicated & harder to implement than say exempting certain items like healthcare, food, rent, etc. They could also consider variable rates (e.g. 1% on necessities, 20% on luxury goods).
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I worked at headquarters for a large retailer with stores in nearly every state. Most States have sales tax and no two are alike. Some with separate rates by county, different rates for food vs clothes, etc. I asked our Sales Tax dept how they handle this. They told me with todayâs POS itâs a piece of cake. From headquarters they could update any specific rates for any specific location(s) & have all the storesâ POS systems updated within minutes.
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No, no, no. Youâre just exchanging one crooked manipulated system for another. Your SS is already going to the General fund. The legalized ponzi scheme known as SS should have never been approved to begin with, now we are all in debt because of the blank checks with no backing SS created. Only two exemptions shall be granted just as with state sales tax (most states) food and labor. Nothing more.
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For simplicity, refer to FAIRTax.org. The FAIRTax proposal has been out there for over 30 years. It is well researched, and its time has come.
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So you donât understand finances I see. The elderly are the ones who saved all their lives for their retirement AND PAID TAXES ON THOSE SAVINGS. NOW you expect them to pay taxes AGAIN on that money when they spend it to live on? The rest of your comment is just nuts. They are the greatest generation who fought for the freedoms we have now though the young people today are destroying their own future opportunities NOT the elderly. You sound like you have more issues.
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Given POSs are already designed to handle a wide variety of state sales taxe rates, adding a few more federal rates would not be difficult at all. The efficiency & cost savings going forward would be astronomical. Ex-I worked for a retailer with ~2,500 stores across the US. The corporate acctg dept had 4 accountants managing sales tax, updating POS rates for all stores, & sales tax reporting & payments. Meanwhile, managing income taxes requires HR staff to manage W4s, IT to keep employees records super secure, numerous accountants to manage & submit income tax reporting (941s, etc) to IRS, year-end W2s to employees, etc, etc. Oh, and 1099s to make sure the IRS doesnât miss out on anyone paid under the table. And, donât even get me started on tip income.
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here is one better. Like some of the founding fathers argued we should be using CONSUPTION taxes. IF you use something like public indoctrination centers opps I mean schools then you pay a set flat tax for them. If you travel on roads the correct word for it is as stated in the USA constution then you pay a flat tax to do so.
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I support the idea of replacing the federal income tax with a national sales tax. It would simplify the tax system and allow people to have more control over their money, paying taxes based on what they consume. To improve this, a cap on the sales tax rate would prevent it from becoming too burdensome on low-income families. Additionally, essential items like groceries and utilities should be exempt from taxation to protect those who spend a larger portion of their income on necessities. This balances fairness with simplicity.
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I think one of the best parts about this is it would generate A LOT of government income from tourists, assuming we donât make them tax exempt.
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Iâve said it several times, the only exemption would be food and labor like most states already have. As far as utilities, some of those are federal taxes or fees, both would be eliminated. Low income families buy low income products so the sales tax wouldnât burden them anymore than someone who buys more expensive things.
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Oh, I agree with you in principle and SS is one of the worst acts imposed upon us. It should be eliminated or at least allow taxpayers to opt out of it. But, unfortunately, to get rid of income tax, weâd have to make super easy to understand and hard to argue against. The â23%â is being weaponized against it as most people donât understand it includes SS tax. So many people will even tell you that SS is not a tax - they actually believe it goes into an account for them to draw from when they retire. So, my thinking is how to propose eliminating (at least as a first step) the income tax in a way to get enough public support behind it. It wonât be easy given the lack of education Americans have about our tax system.
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The âGreatest Generationâ are few and far between, most are boomers like yourself.
Weâve all paid taxes on our savings, furthermore, the elderly have far more disposable income than a young family of four. Boomers had far more opportunities than the young whoâve seen debt from 20 years of war among other things that the boomers chose to endeavor.
Agreed, but itâs not to me to educate the lowest common denominator anymore.
A sales tax on all stock purchases!
No, just no.
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If Thhats the Case, Then WHY do Some States HAVE it and Some States DONâT ???
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Its not 30% but its high like 23-25 The problem that most people donât realize is that you have a 22% tax already when you take into account all the tax costs + sales tax that goes into making and delivering the product. So a 25% sales tax ( if all other taxes were abolished ) would likely yield more total revenue.
Again though without something like fairtax to offset those impoverished and unable to pay taxes i am not sure it would work. Everything someone at or below the poverty line is spending money on, in theory, is a necessity not part of disposable income. Fairtax allows for the government to give a pre-bate to EVERYONE based on their family makeup to essentially cancel out any taxes on those necessities.
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I understand the reasoning for wanting to giving some an incentive of some kind. I just donât agree. Iâm not emotionally connected to anyone. No tax on food or labor is the only carve-outs. Now could we say no tax on first 10k of a new car, first 50k of a new house, thatâs something that I would consider. I donât believe in means testing for how much skin in the game a person has, thatâs what politicians use to divide us.
Though I do think a national sales tax would have been good IF STARTED WHEN INCOME TAXES BEGAN. Now it is very unfair to those who now only have their savings and minimal income. Opportunities are irrelevant for this issue. The problem is over spending and not taxes or how they get them.
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This is why the Fairtax is yet again superior. A pre-bate for how much you would spend on taxes is better than picking exceptions because picking exceptions gives the various industries a target for lobbying. Fairtax allows two levers to be pulled⌠the consumption tax rate and the poverty line. Period.
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