I overheard a conversation at lunch today. Two men were talking about the possibility that if every state raised their sales tax by 1%, the combined yearly total for the extra 1% of every state going to the Federal Government would eradicate the need for Income Taxes for John Q. Public and we would enjoy a larger paycheck. Any mathemeticians out there able to do the math on this?
2006-10-18 10:47:57 · 7 answers · asked by Anonymous in Social Science ➔ Economics
I believe that is possible... However, I could see the government raising the state tax (which is an entirely seperate entity by the way) and then not doing away with the income tax. My state (NJ) recently shut down anything government (down to the casino's) until everyone agreed to raise our sales tax to 7%. Mind you the tax was raised to 6.5% in 1990 and they changed it back 6 months later because everyone sstarted shopping in Delaware where there is 0 sales tax.
Anyway, point is... it will never happen... just like I will never be able to collect the Social Security I pay so much into when I'm 65.
Have a great day!!
2006-10-18 10:58:09 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Absolutely false.
States generate less than $1 trillion per year (total of all states) from state revenue sources. (33% of state revenue sources come from state sales taxes)
The federal budget is about $2.7 Trillion. (I don't know off the top of my head how much comes from Federal Income Tax)
A 1% increase in state sales tax would come nowhere close to replacing the income tax.
Too bad. The IRS is evil.
.
2006-10-18 11:05:26 · answer #2 · answered by Zak 5 · 1⤊ 0⤋
It doesn't take a mathematician to understand this my friend. IRS is not going to give anyone breaks! Eradication is a total illusion. Someone is looking for ways to make more money not stop the flux of it coming in by any stretch of the imagination! Do you really think the IRS is going to let the state take control their money? NOT! $1. dollar for every ten dollars, hummmm.....that's pretty steep also.
2006-10-18 10:56:07 · answer #3 · answered by soniaatcalifornia 5 · 0⤊ 0⤋
Honestly the math dosent matter. what matters is greed. If this were to happen the goverment would keep both to make even more money!
2006-10-18 10:50:34 · answer #4 · answered by Lonely One 2 · 0⤊ 0⤋
down with the government
2006-10-18 10:57:25 · answer #5 · answered by ray h 2 · 0⤊ 0⤋
it will only hurt the working people and help the lazy
2006-10-18 10:51:17 · answer #6 · answered by An American 1 · 0⤊ 0⤋
yes i do think so
2006-10-18 10:48:49 · answer #7 · answered by Anonymous · 0⤊ 0⤋