Originally Posted by Vengeance47
Not really sure how the US tax system works but sales tax actually isn't that bad of a thing if it results in a number of more menial taxes are removed.
There's an argument in Australia atm to raise the sales tax from 10% to 15% and it actually makes a lot of sense because what they are proposing to do is once the tax is upped to 15%
, they are removing other smaller taxes that are harder to collect revenue from (from an admin pov) which will ultimately save the country a lot of money in administration and tax collection. So even though you're paying the same level of tax, the 15% GST is much easier to collect and administrate than a whole bunch of small taxes. So for each tax dollar, we will end up getting more out of it despite the fact we are paying the same amount.
That is the type of approach this tax should take, hit you on one side, but then relieve you on another. I know the US has a relatively large anti-welfare sentiment, but the money saved on administration of smaller taxes and the cost of actually collecting those taxes will be put back into the system through welfare and other services that benefit the society. So this could actually be a decent move.
Just because you see the word "tax" doesn't mean its always a bad thing.
Although I'm not entirely sure what is being proposed here and what level of tax, so this could very well be negative.
I think that (the emphasis in the quote) is what has people somewhat up in arms here. There is no denying the fact that the US needs to raise revenue at both the federal level and the state levels respectively. And yes, if the government were a trustworthy, ethical body of intelligent 'governors' - you'd have me behind a similar initiative in a heartbeat. The problem is that in the past (and I don't mean the past few years - I mean pretty much throughout the history of the country) as soon as a new source of revenue is 'created' in the form of a tax, fee, license, etc... the bureaucrats have already spent that revenue before it even hits the coffers. So now they can't afford to actually go back and eliminate the onerous taxes and revenues they promised would be replaced by the new set. The net result is that we are continually spending more and getting less. Look at the EU as the guide. They have much higher sales taxes than we do - but do they have huge surpluses, or are they busily now trying to figure out where the money will come from? Same applies here - only UNLIKE the EU (where at least in many countries they are trying
to cut spending as well as raise revenue) - our representatives, if they can be called that, can't even agree on the smallest of meaningful cuts... and when they do, they backload the bill with so much pork it defeats the purpose by the time it gets passed.
Don't have a solution really - not even sure there is one at this point - but just adding more money hasn't helped in the past and I'm sure it won't help in the future either until EVERYONE gets serious about the problem.