Quote:
Originally posted by ulfie@Nov 13 2002, 01:52 PM
Cal, how in the world is a sales tax a tax cut for the rich? How much does someone making $20k a year versus someone that makes a million dollars consume? Most likely a national sales tax would be a tax INCREASE on the rich due to the fact that deductions would disappear and they consume a lot more.
As for turning merchants into tax collectors I don't care for that either but just about every state has a sales tax and it's a pretty rare occurence for a merchant to get hauled off to jail for not remitting their taxes. I know in PA doing the quarterly returns for merchantile taxes is a pain in the ass. Mom and pop businesses really don't need another thing they have to keep track of. A flat tax would suit me just fine as our current system is insane. I have a real horror story about the irs that after 6 years still isn't completely settled. They are as screwed up as a beauracracy can possibly get.
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No I pay quite a bit of taxes, but anyone who runs a sub chapter S corp can tell you that with a decent accountant you pay much less tax than the average individual just for being a businessperson.
Here's how sales tax benefits the rich:
1) Rich people can import things, and find ways around it (just like they find ways around income tax) plus many times they OWN the businesses selling these things, so by claiming things stolen, by not reporting stock, etc. they can get many items at a discount.
2) Rich people do not HAVE to consume as much. Typically they do not have as many children as poor and minorities. A rich person can live in a 1 bedroom house or a mansion, they have the CHOICE. Or they could simply leave the US, and not pay any US sales tax at all.
The true victim of a tax system like this would be the single-income family. A single mom working at a job that barely keeps her at the poverty line does not pay anywhere near 30% tax when you consider all the refunds and assistance she gets. Yet she has 3 children, so she consumes more than a rich family with a modest house and no children (and two incomes.) Unless you propose making generic brands of everything tax free so all the poor will have something to eat
That article clearly states who is in favor of this tax reform and who isn't. Note that all of those in favor are conservative/reactionary groups? Their constituency is pretty obviously the wealthy.
I support tax reform that would give more money to the STATES such as increased property taxes (which truly DO cost the rich money, both homeowners and landowners) in exchange for decreases in other places, but let's not fool ourselves into thinking a flat tax or a national sales tax are solutions that benefit the common working man in America.
If you are in favor it giving to the rich and taking from the poor just say so, I don't agree but it's better than covering up your arguments by saying they're for the good of the 'people.'
C.