Are you ready for your taxes to go up?

[L&Lfan]

I got an Amazon delivery today. Fourth time since the quarantine.

 

[Notrealname]

I would not be surprised if this whole Corona Palooza fiasco results in a National Sales Tax. Just you wait.

That’s obvious. Sales taxes are among the most regressive taxes out there. Surely that’s the best way to pay for deductibility of the three martini lunch that’s being proposed regularly to help “solve the restaurant industry's problem.”

 

[tinkerdorabelle]

xx

 

[tinkerdorabelle]

Bezos and his little company, Amazon, is making a killing off this virus and shutdown.
But hey, his idea, his reward.

And how does that justify the fact that he paid no federal taxes. https://www.cnbc.com/2019/02/15/amazon-will-pay-0-in-federal-taxes-this-year.html

 

[Notrealname]

And how does that justify the fact that he paid no federal taxes. https://www.cnbc.com/2019/02/15/amazon-will-pay-0-in-federal-taxes-this-year.html

They will in 2020.
Amazon isn’t Jeff. Whether he pays taxes is another question.

 

[TLSnell1981]

I guess Once Upon a Time, in a world where They All Lived Happily Ever After.

Reality is a Galaxy Far, Far Away however.

Except SS was never meant to be the primary source of income. It's a supplement.

 

[BuckeyeBama]

Except SS was never meant to be the primary source of income. It's a supplement.

It has evolved over time, and the original intent is lost to history. For much of America, it has been the only source of retirement income for more than a generation.

 

[Farro]

That’s obvious. Sales taxes are among the most regressive taxes out there. Surely that’s the best way to pay for deductibility of the three martini lunch that’s being proposed regularly to help “solve the restaurant industry's problem.”

What is a national sales tax? A tax on top of state sales tax?

 

[TLSnell1981]

What is a national sales tax? A tax on top of state sales tax?

Same as VAT in Europe. Yes, it's a tax on top of local and state sales tax.

 

[rkstocke5609]

What is a national sales tax? A tax on top of state sales tax?

Yep. It’s sometimes called a VAT or Value Added Tax. There have been suggestions of replacing the income tax with it but that’s never gone anywhere. Mainly because they were talking of adding it nominally to see how it works without getting rid of income tax, and of course if they did that then we would just have both. They never really want to get rid of any tax they implement. Anyways, the argument was it would be more fair because it would hit everyone..

 

[Farro]

Yep. It’s sometimes called a VAT or Value Added Tax. There have been suggestions of replacing the income tax with it but that’s never gone anywhere. Mainly because they were talking of adding it nominally to see how it works without getting rid of income tax, and of course if they did that then we would just have both. They never really want to get rid of any tax they implement. Anyways, the argument was it would be more fair because it would hit everyone..

Without doing any kind of research at all, on the surface getting rid of income tax in favor a national sales tax seems ideal.

but then I would have to figure how much more I'd be paying in sales tax in comparison to my income taxes and well...I'd just fall asleep.

 

[TLSnell1981]

Without doing any kind of research at all, on the surface getting rid of income tax in favor a national sales tax seems ideal.

but then I would have to figure how much more I'd be paying in sales tax in comparison to my income taxes and well...I'd just fall asleep.

Yeah, but they wouldn't get rid of income taxes. A National Tax would just be another bite..

 

[TLSnell1981]

I got an Amazon delivery today. Fourth time since the quarantine.

They check on me every couple of days.

 

[rkstocke5609]

Yeah, but they wouldn't get rid of income taxes. A National Tax would just be another bite..

“Bite” ... kinda like a vampire....

 

[SamFaniam]

Anyways, the argument was it would be more fair because it would hit everyone..

The argument is faulty though, as a regressive tax like a federal sales tax would disproportionately affect low income people. We all essentially bus most of the same things - food, clothing, etc. A higher wage earner may purchase more of those things, but not at a significantly greater level. And occasional luxury purchases like an expensive car would also be occasional. So, unless there was no tax on things like food, clothing, school supplies, people in low income brackets would end up paying a higher percentage of their earnings in tax then high income brackets.

 

[rkstocke5609]

The argument is faulty though, as a regressive tax like a federal sales tax would disproportionately affect low income people. We all essentially bus most of the same things - food, clothing, etc. A higher wage earner may purchase more of those things, but not at a significantly greater level. And occasional luxury purchases like an expensive car would also be occasional. So, unless there was no tax on things like food, clothing, school supplies, people in low income brackets would end up paying a higher percentage of their earnings in tax then high income brackets.

Yes, that was the argument. I wonder, does anyone know how they achieve “equality” in the progressive European countries? Do they just use VAT, and then tax the wealthy above & beyond to achieve fairness and equality?

 

[Notrealname]

Yes, that was the argument. I wonder, does anyone know how they achieve “equality” in the progressive European countries? Do they just use VAT, and then tax the wealthy above & beyond to achieve fairness and equality?

VAT is more than a sales tax. It’s a tax paid at each level of production.
Here’s the VAT rates for Sweden. There are three tax rates for VAT.

• 25 per cent VAT is the general tax rate, which applies to most goods and services.
• 12 per cent VAT is charged on foodstuffs, hotels and artists' own sales of works of art, for example.
• 6 per cent VAT rate applies to newspapers, magazines, books, passenger transport (taxis, buses, flights and trains) in Sweden and concerts etc.
• zero for Medicines supplied on prescription or sold to hospitals; printing and other services related to the production of magazines for non-profit making organisations; intra-community and international passenger transport.

When you buy something, anything . . . You just pay the posted price. If the souvenir is1,000 that’s what you pay. Then you get your receipt you’ll see that you paid 200 VAT

There are other taxes on top of the VAT. Using Sweden as an example, here’s what else.
Local taxes in Sweden range from around 29% to 35% of income.
National income taxes are:
None on yearly income up to SEK 490,700 ($49,000)
20% on 490,700 to 689,300 ($69,000)
25% on income over 689,300
No deductions. Instead you get paid - one child you get $120 a month and up to $620 for four children.
No forms to fill out. You get a simple short form that is already filled out, review it, and, if you agree, sign and submit it electronically. Take that H&R Block!
Income from capital 30% (state tax, the rate varies)
Corporate income tax 21.4%
No property tax.
Fun read . . . part of the reason Swedes are taking the chances involved in not staying at home. They trust their government and the revenue service to look after them if they need assistance, https://www.vox.com/2016/4/8/11380356/swedish-taxes-love

 

[TLSnell1981]

VAT is more than a sales tax. It’s a tax paid at each level of production.
Here’s the VAT rates for Sweden. There are three tax rates for VAT.

• 25 per cent VAT is the general tax rate, which applies to most goods and services.
• 12 per cent VAT is charged on foodstuffs, hotels and artists' own sales of works of art, for example.
• 6 per cent VAT rate applies to newspapers, magazines, books, passenger transport (taxis, buses, flights and trains) in Sweden and concerts etc.
• zero for Medicines supplied on prescription or sold to hospitals; printing and other services related to the production of magazines for non-profit making organisations; intra-community and international passenger transport.

When you buy something, anything . . . You just pay the posted price. If the souvenir is1,000 that’s what you pay. Then you get your receipt you’ll see that you paid 200 VAT

There are other taxes on top of the VAT. Using Sweden as an example, here’s what else.
Local taxes in Sweden range from around 29% to 35% of income.
National income taxes are:
None on yearly income up to SEK 490,700 ($49,000)
20% on 490,700 to 689,300 ($69,000)
25% on income over 689,300
No deductions. Instead you get paid - one child you get $120 a month and up to $620 for four children.
No forms to fill out. You get a simple short form that is already filled out, review it, and, if you agree, sign and submit it electronically. Take that H&R Block!
Income from capital 30% (state tax, the rate varies)
Corporate income tax 21.4%
No property tax.
Fun read . . . part of the reason Swedes are taking the chances involved in not staying at home. They trust their government and the revenue service to look after them if they need assistance, https://www.vox.com/2016/4/8/11380356/swedish-taxes-love

Yep, taxed and taxed and taxed...again and so on. Not all In the EU have the same opinion. Many feel no matter how hard they work, it's impossible to get ahead. It's why they want the opportunities we have as Americans. They think we are very unappreciative.

 

[Starwarsfan2]

Neal Boorts "The Fair Tax Book" is a good example of doing away with the income tax and replacing it with a tax on goods.Take a look at it.
He doesn't hold out hope of it ever happening though due to lack of Congressional support.

 

[cabanafrau]

Except SS was never meant to be the primary source of income. It's a supplement.

I never suggested SS in any way, shape or form. Another poster suggested a one-time 75% on retirement accounts to wipe out the debt, and I believe suggesting there would then be healthy funding for SS and all would live happily ever after or something.
To repeat, I never discussed SS at all. I think your comments are misdirected.