Enacting a federal sales tax.

[Supposn]

Incremental transferring from taxing net incomes to taxing sales.
I’m a proponent of shifting from our payroll and income taxes to a federal sales tax.

Transforming our entire major tax revenue source in a single step would be imprudent.
The possible advantages gained from a single step method doesn’t justify the proposed magnitude of risk. (Those who insist it be done in one step are insisting that it never be attempted).

I expect that after one of the incremental steps, the sales tax will approach an unacceptable rate and the transfer of tax revenues will be halted. Wealthier tax payers’ would pay both income and sales taxes; very few people pay income taxes.
If I’m incorrect, federal income taxes will be entirely eliminated,

Refer to the next message, “Incremental tax transfer steps”.

Respectfully, Supposn

 

[Supposn]

Incremental transferring from taxing net incomes to taxing sales.
I advocate that the first incremental step differ from all of the other steps:

Income taxes per capita reduction from taxable income is changed to a single amount of per capita, annual cost of living adjusted single per capita amount of tax credit. Upon the year of enactment, the CBO would determine that first year’s revenue neutral amount.

Both employees and employers FICA payroll taxes shall be equally reduced from a total of 15.3% to become 6.2%.

A new federal 4.55% sales be enacted, 1.45% of which would be ear marked for Medicare and 3.1% ear marked for Social Security retirement. (This proposal is dependent upon congresses ability to draft a sales tax with a tax base that’s at least twice the aggregate USA payrolls now subject to FICA).
/////////////////////////////////////////////////////
Thereafter the U.S. Congress should consider continuing to entirely fund Medicare from the sales tax and equally share Social Security funding between FICA and the sales tax.
/////////////////////////////////////////////////////

** Incremental tax transfer steps **
All procedures within the incremental steps can be carried out in a revenue neutral manner:

All income brackets’ tax rates should be reduced by the same percentage.
Individuals’ income taxes per capita tax credit should be increased.
The federal sales tax should be increased.

After each incremental step, additional segments of our population will continue to pay the federal sales tax but they’ll no longer pay income taxes.

I expect that after one of the incremental steps, the sales tax will approach an unacceptable rate and the transfer of tax revenues will be halted. Wealthier tax payers’ would pay both income and sales taxes; very few people pay income taxes.
If I’m incorrect, federal income taxes will be entirely eliminated,

Respectfully, Supposn

 

[steveox]

Im against this,,, Raise taxes on the wealthy

 

[dogtowner]

Im against this,,, Raise taxes on the wealthy

they're not wealthy enough to make a difference even if you tax them at 100%

 

[steveox]

Look how it used to be back in the 1950s The Rich paid more than 60% in Taxes until JFK lowered it to 33% Im Totaly against Sales taxes..Its only gonna encorage me buy a house in southern Texas near the Mexican Border and ill buy food and clothing in Mexico.

 

[dogtowner]

Look how it used to be back in the 1950s The Rich paid more than 60% in Taxes until JFK lowered it to 33% Im Totaly against Sales taxes..Its only gonna encorage me buy a house in southern Texas near the Mexican Border and ill buy food and clothing in Mexico.

lets not confuse marginal income tax rates with what people actually pay. deductions are the balance in that equation.

and when they ask if you have anything to declare ? or if you ar bring food ? easier said than done steve.

 

[steveox]

How did JFK lower taxes so easy then?

 

[dogtowner]

How did JFK lower taxes so easy then?

by eliminating tax breaks (loopholes, deductions however you view them)

 

[steveox]

BUT NO SALES TAX!!! Im For Other taxes like raise international landing fees,,Raise international port fees, Raise international fees for customs. Lets make it expensive for world tourist come to America. Raise Taxes on all prouducts thats not made in the USA just like Japan does when Japanese buy our chevys. Get rid of Gas taxes,, Create Toll highways like $3 to drive on a highway.

 

[dogtowner]

BUT NO SALES TAX!!! Im For Other taxes like raise international landing fees,,Raise international port fees, Raise international fees for customs. Lets make it expensive for world tourist come to America. Raise Taxes on all prouducts thats not made in the USA just like Japan does when Japanese buy our chevys. Get rid of Gas taxes,, Create Toll highways like $3 to drive on a highway.

trade wars haven't worked out so well in the past and with tax cheat Tim Geitner devaluing the dollar willy nilly its already expensive to come here.

but use taxes and private highways are a terrific way to address infrastructure matters that govt cant seem to get right.

 

[steveox]

Look how they charge you driving in London in the UK. why not here?

 

[dogtowner]

Look how they charge you driving in London in the UK. why not here?

or the NJ Turnpike.

 

[steveox]

or the NJ Turnpike.

Im all for that.. It makes gasolene cheaper.

 

[dogtowner]

Im all for that.. It makes gasolene cheaper.

only if the tax is repealed. you know they loath doing that.

 

[steveox]

You have any idea how many cars on the NJ turnpike? Now how often you fill up for gas? Bout ever 2 to 3 weeks right? But you have to take that Turnpike everyday to work. $6 every workday is round trip is $120 per month. Gas is 50 cents a gallon a 10 gallon tank thats $5 per fillup in Gas tax Thats $10-$20 a month. You realize how much the state and federal government 100,000 cars everyday on that highway? Thats more that enough to repair the roads and build new bridges. So if you take away the gas taxes Fright companies wont charge us too much for food and clothes. Its fright companies making everything so expensive. Thats another thing about Socialism. Socialism is the government can tell those companies what they can charge and what they cannot charge you. Look at China,,They wont allow oil companies and OPEC to dictate them. Just like Hugo Chavez now controls Companies,Banks,Oil and the Media in his country. Isnt that what we voted Obama in for? We wanted change!! All he gave us the same old crap that Bush gave us for the last 12 years!