GOP propose 30% national sales tax

[Tiggs]

11 hours ago, DieChecker said:

My initial suggestion was that everyone had a "tax card" that they'd swipe at every purchase. Online purchase would require typing in the number code.

The card would be specific to each tax payer, and they'd pay tax based on the last year. Obviously people could file for exceptions, since people are hired/fired all the time.

Retired people would be no different. But those in the poverty category would pay little or none.

Interesting idea, but that would also add an additional burden to all businesses to be able to process those cards, from lemonade stands up.

I think any system where there are different rates for individuals would be gamed, tbh. Suspect you'll encounter cases where people with $10k of income are making $100k of purchases, fairly regularly.
 

11 hours ago, DieChecker said:

I think the much bigger trick would be how does the Federal Government, who collects ALL the taxes, hand it out fairly to the states and local municipalities.

Suspect the easiest method would be to add State taxes on top, like they are now.

[Myles]

19 minutes ago, DieChecker said:

It would need to include "gifts" as well, or the Uber rich would just gift stuff before they die.

 

People already do that, and they are not all rich.   We had my mom and dad sell their house to one of my brothers for $1 about ten years ago when my parents were in their low 80's.  My parent lived there till they passed.  My dad died spring of 2022.  We have sold their house for $260,000.  It's not much of a house but it is on a lake and the market was high last summer.  We haven't gotten our cut yet (split between 8 siblings).  The lawyer is still doing his thing.  

We knew that if it came to where the had to use medicare, they could lose their house.

[DieChecker]

On 2/2/2023 at 3:27 AM, Myles said:

People already do that, and they are not all rich.   We had my mom and dad sell their house to one of my brothers for $1 about ten years ago when my parents were in their low 80's.  My parent lived there till they passed.  My dad died spring of 2022.  We have sold their house for $260,000.  It's not much of a house but it is on a lake and the market was high last summer.  We haven't gotten our cut yet (split between 8 siblings).  The lawyer is still doing his thing.  

We knew that if it came to where the had to use medicare, they could lose their house.

True. I was simply pre-supposing that people would care more about the "Rich" gaming the system then those in poverty. 

What with constant talk of "fairness". But aimed only at the Rich. 

I don't think there's a clear way to have "fair" taxes, as every person gains income differently, and every person has a different level of personal wealth.

[Myles]

1 minute ago, DieChecker said:

True. I was simply pre-supposing that people would care more about the "Rich" gaming the system then those in poverty. 

What with constant talk of "fairness". But aimed only at the Rich. 

I don't think there's a clear way to have "fair" taxes, as every person gains income differently, and every person has a different level of personal wealth.

1 advantage of higher sales tax is that people paid under the table would pay their fair share.  Criminals doing illegal activities would now pay taxes.  

[DieChecker]

On 2/1/2023 at 9:18 PM, Tiggs said:

Interesting idea, but that would also add an additional burden to all businesses to be able to process those cards, from lemonade stands up.

True. But it would, IMO, be one if the few ways to link an individual to a database to allow a progressive individual tax rate system. 

Most states already have extra software on charges to pay sales tax. This would be similar in scope, I think.

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I think any system where there are different rates for individuals would be gamed, tbh. Suspect you'll encounter cases where people with $10k of income are making $100k of purchases, fairly regularly.

True. I don't think any system will be simple, straightforward, or fair. Especially since it's almost always the Rich creating the system. And then adding bells and whistles as their friends want to pay less.

I don't really support a 30% flat tax. But I was trying to imagine how it might be made to function, if just in theory.

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Suspect the easiest method would be to add State taxes on top, like they are now.

True, but the entire reason of a flat 30% rate was to eliminate all other taxes.

[Myles]

15 minutes ago, DieChecker said:

T

I don't really support a 30% flat tax. But I was trying to imagine how it might be made to function, if just in theory.

 

That is where I am at on this.   Not something that should be rushed.   Do lots of research and planning first.  There are states without income tax so there is a place to start the research.