Re: Income tax...do away with it....sounds good to me
<font color="blue"> "I go and buy me a $10,000 Neon and pay $2,300 tax. Mr. Rich Guy goes and buys a $100,000 Jaguar and pays $23,000 in tax. Who paid more tax?" </font>
Who has more money left after the purchase? Let's say that both people need a car to get to work in order to earn the $$$ on which the taxes will be paid. First of all, based on need, both could spend $10K for a Neon and therefore pay the same tax. Mr. Rich Guy may choose to spend the extra money and therefore the extra tax, but he doesn't need to. He can get to work in the same car as the poor guy. But, the poor guy doesn't have a choice. He has to have a car, and the $10K Neon is the best deal he can get. So, a greater proportion of his income MUST be spent than Mr. Rich Guy. Mr. Poor Guy ends up paying 23% tax on everything he buys, while Mr. Rich Guy only has to pay 2.3% tax in order to meet the same needs. Everything he spends beyond that is discretionary. He may well choose NOT to spend the money if the tax is 23%; this is why I said that luxury purchases would be hurt, and the economy would suffer.
Anyway you look at it, this is just a lousy idea.
<font color="blue"> "I go and buy me a $10,000 Neon and pay $2,300 tax. Mr. Rich Guy goes and buys a $100,000 Jaguar and pays $23,000 in tax. Who paid more tax?" </font>
Who has more money left after the purchase? Let's say that both people need a car to get to work in order to earn the $$$ on which the taxes will be paid. First of all, based on need, both could spend $10K for a Neon and therefore pay the same tax. Mr. Rich Guy may choose to spend the extra money and therefore the extra tax, but he doesn't need to. He can get to work in the same car as the poor guy. But, the poor guy doesn't have a choice. He has to have a car, and the $10K Neon is the best deal he can get. So, a greater proportion of his income MUST be spent than Mr. Rich Guy. Mr. Poor Guy ends up paying 23% tax on everything he buys, while Mr. Rich Guy only has to pay 2.3% tax in order to meet the same needs. Everything he spends beyond that is discretionary. He may well choose NOT to spend the money if the tax is 23%; this is why I said that luxury purchases would be hurt, and the economy would suffer.
Anyway you look at it, this is just a lousy idea.
