Great Depression of 2016

[Penny Hen]

How can any country do away with income tax though. Doesn't it fund the running of the country? How would you pay for services such as education? What about building and maintaining the superstructure of the country such as roads etc.? What about defense and the armed services? Surely income tax is needed to fund all of this? I can't for the life of me understand for example, how so many people are entitled to tax rebates? I can understand if a person becomes unemployed he/she will probably be entitled to a tax rebate as the tax was worked out on the assumption of them having a job. But these people would be in the minority and I have seen reports that 50% of people pay no income tax. How does the country therefore pay for all the above?

I favor a consumption tax. No income tax but a tax on everything you buy. If you buy a lot, you pay more. For those who are rich and buy many expensive things they would pay more than people who are poor and buy the necessities, and yet each would pay his share. No one would be getting a free ride.

 

[newfoundland]

Yes I can see the logic of that system, but don't you pay tax on purchases anyway? We pay about 20% VAT on purchases (that's Value Added Tax). Some items are zero rated such as food, but not processed food, and children's clothes and shoes. Household gas and electricity is rated at 5%. We also pay fuel duty so that a gallon of petrol is approximately £5 and diesel is higher.

We pay approximately £250 a year Road Tax for every vehicle. We pay a local tax which is worked out on the rateable value of your home which ranges from about £1200 a year to many thousands if you have an expensive property in the best area. We also pay income tax on everything we have coming in over £10,000 a year. The first £25,000 is at 20%, but much higher after that. It does seem that a lot of money goes out in these taxes but I can't see an alternative? The cost of living is high all over Europe and historically, always has been.

 

[oldrooster]

Yes I can see the logic of that system, but don't you pay tax on purchases anyway? We pay about 20% VAT on purchases (that's Value Added Tax). Some items are zero rated such as food, but not processed food, and children's clothes and shoes. Household gas and electricity is rated at 5%. We also pay fuel duty so that a gallon of petrol is approximately £5 and diesel is higher.

We pay approximately £250 a year Road Tax for every vehicle. We pay a local tax which is worked out on the rateable value of your home which ranges from about £1200 a year to many thousands if you have an expensive property in the best area. We also pay income tax on everything we have coming in over £10,000 a year. The first £25,000 is at 20%, but much higher after that. It does seem that a lot of money goes out in these taxes but I can't see an alternative? The cost of living is high all over Europe and historically, always has been.

Taxes on fast food and junk food, along with all other goods are state taxes, other than the federal government does have a few special taxes on motor fuel, utilites, and a few other items, which also get taxed by the state, some cities and counties have taxes on restaraunts, hotel/motels, special payroll taxes for sports players and entertainers (if it a large city with sports facilities for professional sports usually the basketball/football/ice hockey arenas are indoor and double for concerts, or performances like circuses and other misc. events), Payroll taxes are a mix of Federal, state and Local taxes, some states do not have any form of income tax they simply charge more via property/sales taxes and estate taxes the family pays upon your demise. so In one fail swoop when you die you prove there is 2 certainties in life, your dead and your heirs pay for what you've not taken with you (ie everything but your corpse and soul).

 

[rebelcowboysnb]

Tn has no income tax an has a sales tax around 8%. Dont know about land taxes but have yet to hear anyone say land taxes were high there.

Al an Ga both have an income tax an also a sales tax of around 8%.

 

[oldrooster]

Tn has no income tax an has a sales tax around 8%. Dont know about land taxes but have yet to hear anyone say land taxes were high there.

Al an Ga both have an income tax an also a sales tax of around 8%.

Florida has no income tax that is why Tiger woods amoung others live there. But they have a high sales tax I have been told and I remember seeing on the news the highest estate tax in the nation because they know a lot of old people and people with health problems move there for the warm claimate.

 

[mrchicks]

Here in we have a 5.5 to 6% sales tax (depending on what county you live in), income tax, and our property taxes are much higher than TN. We've been looking at property in TN for these very reasons.

 

[newfoundland]

The difficulty of such a large country as the US is that any system can become unworkable. It would appear that each state has the autonomy to set the level of purchase tax and local taxes. This could lead to disparity between both prosperity and standards of living around the country. I can't see how this can be overcome on such a huge scale. My only comment would be that a system that enables earners of Tiger Woods calibre not to pay income tax, looks like it needs some radical rethinking.

 

[hemet dennis]

The difficulty of such a large country as the US is that any system can become unworkable. It would appear that each state has the autonomy to set the level of purchase tax and local taxes. This could lead to disparity between both prosperity and standards of living around the country. I can't see how this can be overcome on such a huge scale. My only comment would be that a system that enables earners of Tiger Woods calibre not to pay income tax, looks like it needs some radical rethinking.

There is one thing that they didn't mention is that when Tiger wins in say Calif. even though he lives in Florida he still pays Calif. income tax on that money. The same is true of many other states.

This story may interest some of you.

http://www.bloomberg.com/news/2014-04-25/how-to-get-rich-just-by-moving.html

 

[oldrooster]

Quote: True but the sponser money he gets for Buick and Nike or whom ever is taxed by fed only because he does the comercials and such in florida...

 

[rufus]

And why should we be concerned about where and when Tiger Woods pays taxes? If he does well, so much the better. He is not a drag on the economy; he is not on welfare or food stamps. No, he is out there working and doing well. Why should he have to support a bunch of social parasites that won't get off of their duffs and go to work?

Think about it! Why should the people that work and produce have to carry those that won't? The system encourages indolence and dependency.