I Have the Solution!

[Knotical]

This idea was sparked from another thread, which I am unable to remember at the moment, but if someone wants to link to it, go right ahead.

Anyways...

This country (United States) should do away with the federal and state income taxes and just set all sales tax at a flat 10%. They can take that 10% and split it between the local, state, and federal governments. The revenue generated from this would be more than what is currently generated through the current income tax system (considering a certain portion of the public are not actually paying income tax), and will eliminate the need for the IRS and state franchise tax boards, thus removing that expense from the related annual budgets.

It's a win/win.

I have solved all the problems, you may stare in awe and wonder now.

 

[reba]

And not have all those government jobs? the poor discarded IRS agents

 

[Knotical]

They can always become private accountants.

See, another solution. I am full of them today.

 

[WIP]

Not that I agree with this but the argument that follows is that now we would be putting a hardship tax on the poor.

 

[Knotical]

Not that I agree with this but the argument that follows is that now we would be putting a hardship tax on the poor.

How so? We would still not tax food, just the stuff that would be considered "non-essential" or "luxury" items.

 

[WIP]

Oh. You said "sales tax" so I assumed you meant it would apply to all sales.

 

[Knotical]

I should have qualified that, sorry. I guess it can be confusing from state to state, as different states apply sales tax to different things. Of course then there is Nevada, which has NO sales tax, or income tax for that matter.

I am thinking just apply the 10% sales tax to anything that is not considered a "necessity," such as food (staples mostly, no junk food), and clothing (basic brands, not high end clothing). Other than those things I think the sales tax should be applied to everything else. With the way people in this country consume things, and the fact that now we would be applying a sales tax in areas that have little no sales tax in the future, the revenue generated would be significant.

 

[Sinthesis]

I should have qualified that, sorry. I guess it can be confusing from state to state, as different states apply sales tax to different things. Of course then there is Nevada, which has NO sales tax, or income tax for that matter.

I am thinking just apply the 10% sales tax to anything that is not considered a "necessity," such as food (staples mostly, no junk food), and clothing (basic brands, not high end clothing). Other than those things I think the sales tax should be applied to everything else. With the way people in this country consume things, and the fact that now we would be applying a sales tax in areas that have little no sales tax in the future, the revenue generated would be significant.

Your solution is already caving to special interests.

 

[Knotical]

Your solution is already caving to special interests.

How so?

 

[mcmurry]

And not have all those government jobs? the poor discarded IRS agents

The IRS would really be INTERNAL and check all government agencies and their budgets!

 

[Knotical]

The IRS would really be INTERNAL and check all government agencies and their budgets!

Now you are just talking about a fantasy land.

 

[thisnumbersdisconnected]

Herman Cain lives! (Plus a point)

 

[Knotical]

Herman Cain lives! (Plus a point)

But of course, though I am a bit younger and only slightly less controversial, or touched in the head, that he.

 

[jasoncran]

uhm. what about those who cheat the sales tax? or what about what is called tangible tax? ie house cleaning?

 

[thisnumbersdisconnected]

You can't cheat the sales tax from the customer side of things. Merchants can, however, cheat by not paying all they have to pay. That almost always catches up with them because they report their actual receipts on their income tax return, and the IRS would compare that with the sales tax paid in. It would quickly become obvious who was cheating. While there is motivation to cheat, the ability to get away with it is not as great as one might think.

 

[jasoncran]

uhm, when I pay for cash on tools we don't pay sales tax. funny aint it. no records of sales no tax. it makes it easier as he doesn't have to track it.

 

[Knotical]

Interesting, jasoncran, considering any time I buy anything at a hardware store, whether it be Lowes or OSH, regardless of how I am paying, I will always be paying sales tax.

Now it is entirely up to the merchant as to whether or not they will build into the cost of an item the sales tax, or if they will add it on to the total purchase at the point of sale, but you are always paying sales tax.

 

[jasoncran]

not if a company gets materials made under the radar or does it as such.i don't buy my tools from lowes but from the snapon and matco types. they are franchised and they buy th the tools and they have profit on their costs to make. reducing the costs of it enables them to sell more.

remember only when a business buys from another do they pay. ie if a car repair buys a part they don't pay the tax on that. they charge the customer whom they installed it for that tax. that is why the tool dealers do that. they don't loose!

 

[Knotical]

So you are able to "get around" paying taxes on the tools you buy, but what about the other things you buy that are not considered "necessities?"

 

[jasoncran]

if and if I pay cash. hmm well if asked a favor I might get parts as well but that isn't likely.seldom do I pay cash and has to be paid in full. some tools run me over 200 dollars.