Why doesn't the gov't stop taxing our income?

Question

If they just raised the sales tax, then illegals and off the book employees would have to pay thier share everytime they buy something. The rich would pay more taxes because they buy more. The poor would be tax exempt. Things would cost more, but we would take home more $. We would all come out ahead, except the people working off the books. It sounds so simple.

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=42054

the poor, meaning, poverty level. not people with poor money mgt.

Answer 1

I agree, it does sound simple, but I think there would be some kinks to work out. For example, you say rich people spend more, they probably do, amount wise, but as far as percentage of income, consider this:
1. a single person making $250,000 a year and living fairly frugallly
vs.
2. a family with 2 kids, making $50,000.
Number 2 will be forced to spend a large percentage of their income just to support their family.
Another concern would be the development of a huge black market in goods that would form to avoid the high tax on purchases. I think that would inevitable.
Currently, families are basically subsidized by the government because of the tax credits for children. Your idea would take away the penalty for single people which seems fair, but may not be a move that many people would like.

Answer 2

“Schadenfreude" thats the root of it. There are a lot of people out there who just want to see that anybody that has more than them has to lose some of it. Thats why the income tax is "progressive". They don't really care what happens to the money they just want it taken away. They don't care if some of what they have is taken away. As long as anybody with more loses more than they do. Its irrational but human.

They had to amend the constitution because the founders new if the majority could levy a tax on a minority they would unfairly tax them. Thats why the upper 50% of tax payers pay about 90% of the income taxes.

The "fair tax" would end that and those seeking their “Schadenfreude" pleasures would have to use something besides the tax code for satisfaction. Maybe they could throw down some banana peels in front of the ambulatory surgery center.

Answer 3

I know a lot of rich people and they don't buy more. They have money because they don't spend it. What is poor in your opinion? There are some that struggle on 100K a yr.....are they poor? In their minds they are.
I understand where you are coming from, but not sure if it is feasible.

Answer 4

They have to make up for all the tax breaks for the richist americans !!!!

Answer 5

Income is predictable

Billy

Answer 6

What color is the sky in your world anyway??

Answer 7

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz