The Purple Tax Plan 15-15-15

[myp]

Interesting proposal for tax reform. I like that they want to tax consumption (progressively) instead of income and savings. Few things I don't agree with, but it beats what we currently have:

http://www.thepurpletaxplan.org/node/2

 

[DodgeFB]

Interesting proposal for tax reform. I like that they want to tax consumption (progressively) instead of income and savings. Few things I don't agree with, but it beats what we currently have:

http://www.thepurpletaxplan.org/node/2

15% sales tax would just about take me and the wife out. With Kentucky having a 6% already we could not even afford lights and food.

Of course that would be a good way to kill off the dead wood.

 

[David]

15% sales tax would just about take me and the wife out. With Kentucky having a 6% already we could not even afford lights and food.

Of course that would be a good way to kill off the dead wood.

It's not a fixed tax rate, the poorest would pay nothing.

 

[DodgeFB]

It's not a fixed tax rate, the poorest would pay nothing.

Here we pay sales tax at the check-out. No waiting until the end of the year.

1. Replaces personal and corporate income taxes with 17.5% nominal (15% effective) federal retail sales tax.
2. Taxes all consumption of final goods and services, including services from homes, boats, planes, and cars.

 

[David]

Here we pay sales tax at the check-out. No waiting until the end of the year.

1. Replaces personal and corporate income taxes with 17.5% nominal (15% effective) federal retail sales tax.
2. Taxes all consumption of final goods and services, including services from homes, boats, planes, and cars.

And what do you care if you have no or minimal income tax? If you're bringing home $300-500 take home/week are you really going to care about paying an extra $.15/dollar? If all you're buying is groceries and gas you'll have no problem paying.

 

[myp]

15% sales tax would just about take me and the wife out. With Kentucky having a 6% already we could not even afford lights and food.

Of course that would be a good way to kill off the dead wood.

I think you overlooked these four points:

3. Permits those in economic distress to defer taxes on housing services.
...
6. Provides a monthly payment (demogrant) to all households based on family composition.
7. Payment level is set to ensure that those at or below poverty line pay no sales tax on net.
...
3. Maintains the real purchasing power of Social Security benefits; increases in prices due to the retail sales tax will raise the CPI and lead to proportionately higher benefits due to the system's CPI indexing.

They are pushing a progressive system here- it is not a regressive one as a flat sales tax would be.

 

[DodgeFB]

I think you overlooked these four points:


They are pushing a progressive system here- it is not a regressive one as a flat sales tax would be.

The government is a nightmare when it comes to doing anything helpful. I had to cancel my life insurance that I got when I retired years ago. It was the only thing I still had. Why? Because the government wanted to call it income because the company was paying it.

 

[DodgeFB]

And what do you care if you have no or minimal income tax? If you're bringing home $300-500 take home/week are you really going to care about paying an extra $.15/dollar? If all you're buying is groceries and gas you'll have no problem paying.

I pay for water, lights, phone, home owners insurance just like everyone else. Those things have taxes added in each month. It is part of the bill. Not some fairy tale that the government will fix at the end of the year. I know how they fix things, I have years of dealing with the government on so many things. The raise on my Social Security was $30.00. They took $50.00 from my wife due to "spouse" getting a raise. So we lost $20.00 a month when they stopped playing their little game.

Everyone needs to live a year like we do. Then you see how things work in the real world. Try taking their promises and spin to pay a doctor bill.

 

[myp]

The government is a nightmare when it comes to doing anything helpful. I had to cancel my life insurance that I got when I retired years ago. It was the only thing I still had. Why? Because the government wanted to call it income because the company was paying it.

How is that relevant to this discussion? The current tax structure is government run too, ya know

 

[DodgeFB]

How is that relevant to this discussion? The current tax structure is government run too, ya know

I am aware of that! But it is relevant due to having to be paid as "sales tax". That is like my expenses going up that amount when I pay my bills. That is not hard to understand when you think about any bill going up by that amount when you are barely making it now.

 

[myp]

I am aware of that! But it is relevant due to having to be paid as "sales tax". That is like my expenses going up that amount when I pay my bills. That is not hard to understand when you think about any bill going up by that amount when you are barely making it now.

Again, I think you are overlooking these 4 points: http://www.politicalfray.com/showpost.php?p=29198&postcount=6

If your financial situation is not good, you won't end up paying much tax if any at all. You might even get extra money depending on the details of the demogrant. It would also increase your social security benefits since the sales tax would be included in inflation calculations.

 

[DodgeFB]

Again, I think you are overlooking these 4 points: http://www.politicalfray.com/showpost.php?p=29198&postcount=6

If your financial situation is not good, you won't end up paying much tax if any at all. You might even get extra money depending on the details of the demogrant.

Or maybe they will just drag it out for months. They have checked my finances three times in the last 6 months. When they want something they give me 10 days to return it to them. Then they can take 90 days to read it.
But you have to be treated like that to believe or understand my lack of faith in their promises.

I am sure all the people I pay will wait for the government to catch up on their paperwork.

That is all I will say on the subject. Wish I had not replied at all.

 

[myp]

Or maybe they will just drag it out for months. They have checked my finances three times in the last 6 months. When they want something they give me 10 days to return it to them. Then they can take 90 days to read it.
But you have to be treated like that to believe or understand my lack of faith in their promises.

I am sure all the people I pay will wait for the government to catch up on their paperwork.

That is all I will say on the subject. Wish I had not replied at all.

This is a plan for reform and you are arguing irrelevant possibilities. It is possible the government screws up your social security benefits today too and you won't get it for a while. Although it probably won't happen. So what do you think we should do? Just keep everything the messed up way it is? Your concerns are legitimate, but they can be addressed and they aren't really an argument against reform.

And cheer up, you always seem upset- look at the bright side of things

 

[DodgeFB]

This is a plan for reform and you are arguing irrelevant possibilities. It is possible the government screws up your social security benefits today too and you won't get it for a while. Although it probably won't happen. So what do you think we should do? Just keep everything the messed up way it is? Your concerns are legitimate, but they can be addressed and they aren't really an argument against reform.

And cheer up, you always seem upset- look at the bright side of things

I was not arguing against reform. Just commenting on how it could affect some people.

 

[myp]

I was not arguing against reform. Just commenting on how it could affect some people.

Right, but if done properly we won't run into those problems. Again, the same thing can happen with current social security checks.

 

[Supposn]

Interesting proposal for tax reform. I like that they want to tax consumption (progressively) instead of income and savings. Few things I don't agree with, but it beats what we currently have:

http://www.thepurpletaxplan.org/node/2

Sales tax.

MYP, to whatever extent feasible I advocate shifting from taxing net incomes to a general sales tax.
There’s a limit to drafting a more “progressive” general sales tax. Beyond some extent of tax waivers, governments’ purpose of gathering tax revenue is severely lost.

The purpose of progressive taxation is also advanced when government services equally or more favorably serve poorer persons. Free public education and subsidized public transportation are examples of this concept.

If we should waive sales taxes upon selected items that are a greater proportion of lower rather than higher income earners’ expenditures, or waive taxes upon capped threshold of selected items’ prices, (although the general sales tax has only a single tax rate) those waivers and caps would effectively create a less neutral and to a limited extent a more progressive sales tax.

For example, sales taxes upon medicines, and non-restaurant or catered food items could be entirely waived.
We could waive sales taxes upon the first $5 per person per trip on public transportation, or the first $75 per month per primary residence for each classification of utilities, (i.e. gas, electricity, water, sewage, and communication lines). Such thresholds of price amounts waivered should be annually cost of living adjusted).

Respectfully, Supposn