rozett
Platinum Member
- Joined
- Mar 23, 2002
- Messages
- 718
- Location
- Maine
- Tractor
- Cub Cadet 7360SS & Craftsman GT3000 23 HP w/50
In the Buying/Pricing/Comparisons forum, Henro wrote the following in the Taxes thread...
</font><font color="blue" class="small">( Then again, if I made the rules there would be no sales tax to begin with, sales tax being one of the most unfair taxes...my tax system would be based on income...not spending. )</font>
Henro, I disagree....although I like to think of a sales tax as a consumption tax. I acknowledge that we need a "progressive" tax so that those that have more are taxed at a higher rate. But I think it is better that those that spend more, pay more.
It would be pretty easy to set up a sales tax system that exempts a core set of necessities like food, some clothing, medical expenses, and heating fuel.... so that lower income folks have their basic needs available without paying a sales tax. Other than that, all goods sold or services delivered are taxed at the point of sale.
Much of the current tax collection structures in the federal and state budgets could all but be eliminated by adding a few cents to the consumption tax for the federal budget. For instance, the FY05 budget for the IRS is $10.674 billion. It would save companies millions of dollars in collecting and reporting income. All of the POS software already has capability for sales tax, so there is little startup problems. And todays tax structure is just loaded with loopholes and intricacies around taxing income. This would all be eliminated.
This would also encourage savings.
</font><font color="blue" class="small">( Then again, if I made the rules there would be no sales tax to begin with, sales tax being one of the most unfair taxes...my tax system would be based on income...not spending. )</font>
Henro, I disagree....although I like to think of a sales tax as a consumption tax. I acknowledge that we need a "progressive" tax so that those that have more are taxed at a higher rate. But I think it is better that those that spend more, pay more.
It would be pretty easy to set up a sales tax system that exempts a core set of necessities like food, some clothing, medical expenses, and heating fuel.... so that lower income folks have their basic needs available without paying a sales tax. Other than that, all goods sold or services delivered are taxed at the point of sale.
Much of the current tax collection structures in the federal and state budgets could all but be eliminated by adding a few cents to the consumption tax for the federal budget. For instance, the FY05 budget for the IRS is $10.674 billion. It would save companies millions of dollars in collecting and reporting income. All of the POS software already has capability for sales tax, so there is little startup problems. And todays tax structure is just loaded with loopholes and intricacies around taxing income. This would all be eliminated.
This would also encourage savings.