Sales taxes are less regressive than flat rated income taxes.

Sales taxes are less regressive than flat rated income taxes.

Due to political and accounting difficulties, methods of calculating net incomes that has or may likely to be enacted into federal tax regulations significantly greater understate taxable incomes of wealthier taxpayers.
This remains true when considering the actual amounts of understatement or those amounts proportional to the taxpayers’ actual net incomes.
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Taxpayers’ purchases’ (rather than any tax forms calculations), more accurately reflect taxpayers’ actual net incomes in proportion to each other. Thus general sales taxes (which are usually flat rated), are less regressive than flat rated income taxes.

Respectfully, Supposn

Aufgeblassen & Reason10, If both of you are opposed to both taxes upon net incomes and upon gross sales, how do you propose we fund our government?

Respectfully, Supposn

reason10 said:

Damned good question.

Why is it the liberals who want one new social program after another don't worry so much about funding those programs? After all, America has a multi trillion dollar credit card.

Ever notice how government was funding without the income tax for most of our existence? We did fine before the 16th Amendment.

The people who want to raise taxes are ironically the same jokers who want to raise spending and borrow trillions to fund that spending.

I believe sales taxes (modest ones at that) could easily fund the legitimate functions of government. The Constitutional functions, that is. Get rid of the welfare state and the national debt could be retired in a few years.

Click to expand...

Reason10, the topic is in regard to our manner of funding the federal government.

You’d prefer a federal sales tax but it should replace all income taxes and government spending should only be for the purposes YOU approve of?

Our methods of taxation and what policies our federal government pursues are separate issues.
As you responded, the question as to how you or Aufgeblassen would prefer to fund the federal government is a damn good question. I’d be interested in real answers.

Prior to taxation of net incomes, our federal government was funded primarily by taxing alcoholic beverages and the collecting of tariffs.

Respectfully, Supposn

reason10 said:

No, I said LEGITIMATE uses of government, as in what the FOUNDING FATHERS had in mind. ...

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Reason10, advocate we revert to slavery, bondage servants and child labor. Let’s do away with health, sanitation and safety laws?
It was exciting to gamble whenever anyone traveled or ingested food or medicine.
Regarding medicine, wasn’t it great when anyone could call themselves a physician and they weren’t required to be schooled?
Regarding education, our government did not proactively seek education for all our citizens.

You and Aufgeblassen prefer a federal sales tax but it should replace all income taxes and government spending should only be for the purposes YOU approve of. Likely the U.S. Congress will continue to passing some laws and pursue some policies that are not amiable to your preferences. That being the case, how do you two prefer we fund our federal government in the future?

Respectfully, Supposn

Sales taxes are not particularly regressive; they're not progressive.

Opponent of general sales taxes correctly point out that lesser income earners must spend a greater proportion, and higher income earners need not, and generally do not spend their entire incomes for products that would be subject to a general sales tax. Lesser income earners generally must spend a greater proportion of their incomes for necessities.
The wealthy have discretionary income, the poor have little or none.

The expenditures of the wealthy that would not be subject to a general sales tax, are currently items that generally now reduce their taxable incomes. Proportional to their individual revenues, their expenditures that would be subject to a general sales tax are no less, and I suspect exceed the proportions of their revenues subject to our current federal individuals' income taxes.

But for those that do not pay income taxes, a general sales tax would be a regressive tax.

I'm a proponent for replacing a significant proportion of taxes levied only upon wages and payrolls, and replacing those revenues with a general sales tax. FICA is the most regressive of federal taxes.
Its effect is most severe upon the wages of the poor and is of no consequence to individuals' incomes other than wages.

Refer to the thread:
http://politicalfray.com/economics/7392-fica-our-most-regressive-tax.html#post72066

Respectfully, Supposn