Ideas for Improving America
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David F Mayer
Sales taxes are regressive.
Wed May 13, 2009 6:02pm

Rich guys spend large quantities of their money on things not covered by sales tax such as further investments, construction of mansions, expensive hookers, foreign vacations, and so forth.

I think that a straight, honest 25-30% from EVERYBODY, less liberal exemptions per person, would do the job of funding the government of the USA quite handily. After all, most rich guys pay well under 20%, when all loopholes, deductions, etc, are considered. The biggest loophole for rich guys is the outrageous "depletion allotment", which I would eliminate completely.

Today, working folks pay 15% social security plus frequently 20% on the other income taxes.

25%-30% with ABSOLUTELY NO DEDUCTIONS is the fairest way to fund the USA. The word "except" will not be found in any law that I would write.

One would pay when he made it and only then. No corporate income taxes. No inheritance taxes. Just a FLAT INCOME TAX.

David F Mayer

  • Not a bad idea....Sprout, Wed May 13 1:36am
    For an entirely different idea look up the 'fair tax plan' as supported by libertarian Neil Boortz... It is based entirely on sales tax. No income tax at all. Just tax paid on money that is... more
    • Sales taxes are regressive. — David F Mayer, Wed May 13 6:02pm
      • Who said thatSprout, Wed May 13 9:16pm
        mansions are not taxed? If there are no exemptions for products (again, your proposed simplified tax system), then anything you buy will be taxed... Sure, the cash you spend in Morocco won't be... more
        • to sales taxes.
          • Indeed....Sprout, Thu May 14 7:43am
            But, you have proposed a TOTAL revamping of the tax code.... Why would that exemption remain? What the 'fair tax plan' also proposed is a total revamping of the tax code. Why assume that such an... more
            • The personal exemption of perhaps $6000 per personDavid F Mayer, Thu May 14 3:34pm
              would be so that poor people do not starve in order to pay their taxes. Since it is the same for everybody, and it affects ONLY the poor significantly, it would be a requirement for a tax code that... more
              • I agree....Sprout, Thu May 14 9:23pm
                Which is why the 'fair tax plan' provides a rebate (called a pre-bate) that is paid to each individual. This returns to each individaul the amount of taxes that they spend on the basic essentials...... more
                • I prefer income tax to sales tax.David F Mayer, Thu May 14 9:38pm
                  Sales tax hits everybody. Income tax hits people only when they have income. Retirees, unemployed persons, etc, etc, would not pay any income taxes, but WOULD pay sales taxes. I say, pay it when you... more
                  • Likewise.Poppet, Fri May 15 9:19am
                    Sales Taxes are, by their very nature, regressive. Even when exceptions are made for certain necessities like food and medicine, the overall effect is to collect a far greater portion of the income... more
                    • VAT = Universal Sales Tax at All Levels. It stinks.David F Mayer, Fri May 15 10:25am
                      VAT is another example of how "liberal" Europe kisses the butts of the rich guys while taxing the hell out of the working classes. So are "Payroll Taxes". They are equally regressive, having a cap on ... more
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