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DRich
DRich
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July 10th, 2020 at 7:34:17 AM permalink
Quote: AlanMendelson

Unfortunately for lower income people a sales tax is the worst kind of tax.

Lower income people spend a greater percentage of their income on merchandise, so their sales tax burden becomes a larger percentage of their disposable income.

You need to be clear:

Do you want a tax system based on the ability to pay, or do you want a tax system that put the same taxes on everyone regardless of their ability to pay?

I want a tax system that takes into account the ability to pay.

A flat tax system, i.e. a tax rate that is universal, might lower taxes for many people but it lacks the ability to pay basis.

Back in the early 1970s I was appointed Chairman of the Rockland County (New York) Citizens Advisory Commission on tax reform. It was a county legislature job. Our goal was to replace county property taxes with a county income tax. We were decades ahead of our time.

The proposal was simple: charge a percentage of the amount owed to the IRS as a county income tax to replace the property tax.

It could have been filed with a postcard.



The problem with income taxes in Nevada is that there is so muc h undec.lared income that is not getting taxed. A spending tax will help alleviate that problem. So many service workers in Nevada support themselves on tips that are often two to three times higher than their wages.
Living longer does not always infer +EV
AlanMendelson
AlanMendelson
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July 10th, 2020 at 7:38:59 AM permalink
Quote: DRich

The problem with income taxes in Nevada is that there is so muc h undec.lared income that is not getting taxed. A spending tax will help alleviate that problem. So many service workers in Nevada support themselves on tips that are often two to three times higher than their wages.



Do you really want lower income people to pay more taxes on gasoline, clothing, small appliances, school supplies for their kids, even some packaged foods and basic necessities like soap, toothpaste and toothbrushes?

Have a heart while you throw money around in casinos.
SOOPOO
SOOPOO
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July 10th, 2020 at 7:56:28 AM permalink
Quote: AlanMendelson




Back in the early 1970s I was appointed Chairman of the Rockland County (New York) Citizens Advisory Commission on tax reform. It was a county legislature job. Our goal was to replace county property taxes with a county income tax. We were decades ahead of our time.
.



I guess I should move to Rockland now. I have very low income, but a high net worth. You want a rich retired guy to pay almost no taxes because my income is very low rather than have me pay high real estate taxes because I own a $3,000,000 house?
Decades ahead of your time in not thinking it through......

Without any question, the fairest tax system would be a 'wealth' tax. Something like 1% of your net worth would be enough to eliminate the federal income tax. A billion from Bezos. 10's of millions from Trump. Every year. A 'regular' well off guy worth 2 million..... 20,000 a year.

The big problem is it would be subject to so much fraud and hiding of assets it would never work fairly. My Monet? it's worth $5,000. Bitcoins.... do I own any bitcoins? Etc....
FleaStiff
FleaStiff
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July 10th, 2020 at 8:16:24 AM permalink
bring back Sin Taxes and close the purse on local governments.
Joeman
Joeman
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July 10th, 2020 at 8:29:47 AM permalink
Quote: AlanMendelson

Do you really want lower income people to pay more taxes on gasoline, clothing, small appliances, school supplies for their kids, even some packaged foods and basic necessities like soap, toothpaste and toothbrushes?

Have a heart while you throw money around in casinos.

Just send out a check/deposit to everyone equal to the amount of taxes on necessities. E.g., if the average cost of a year's worth of necessities is $20k and the national sales tax is 10%, send out a $2,000 check to everyone (or not everyone, based on a means test). To be clever, you could send the checks out about the same time as people would have been getting their tax refund.
"Dealer has 'rock'... Pay 'paper!'"
AlanMendelson
AlanMendelson
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July 10th, 2020 at 8:46:29 AM permalink
Quote: SOOPOO

I guess I should move to Rockland now. I have very low income, but a high net worth. You want a rich retired guy to pay almost no taxes because my income is very low rather than have me pay high real estate taxes because I own a $3,000,000 house?
Decades ahead of your time in not thinking it through......

Without any question, the fairest tax system would be a 'wealth' tax. Something like 1% of your net worth would be enough to eliminate the federal income tax. A billion from Bezos. 10's of millions from Trump. Every year. A 'regular' well off guy worth 2 million..... 20,000 a year.

The big problem is it would be subject to so much fraud and hiding of assets it would never work fairly. My Monet? it's worth $5,000. Bitcoins.... do I own any bitcoins? Etc....



If your income is very low how can you possibly afford the property taxes on a three million dollar house?

Ask the people in California. They passed Prop 13 because inflation pushed up real estate prices faster than incomes, and without Prop 13 they'd lose their houses.

By the way the average property tax rate in New York State is 1.68%. Do you pay $54,000 a year on your home with low income?
Wizard
Administrator
Wizard
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July 10th, 2020 at 8:58:44 AM permalink
Quote: Joeman

Just send out a check/deposit to everyone equal to the amount of taxes on necessities.



I agree. That is also part of my platform. I would also eliminate welfare, as the UBI would cover necessities. No more incentive to mooch off the government as opposed to working.
It's not whether you win or lose; it's whether or not you had a good bet.
AlanMendelson
AlanMendelson
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July 10th, 2020 at 9:14:50 AM permalink
Quote: Wizard

I agree. That is also part of my platform. I would also eliminate welfare, as the UBI would cover necessities. No more incentive to mooch off the government as opposed to working.



Interesting idea. Let me play devil's advocate:

Who determines the necessities and what should be bought and when?
billryan
billryan
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July 10th, 2020 at 9:33:51 AM permalink
Quote: AlanMendelson

Interesting idea. Let me play devil's advocate:

Who determines the necessities and what should be bought and when?



Our ruler would. Being a benevolent dictator with everyone's best interest in his heart, we can be sure he will do the right thing.
A good start would be eliminating the 435 members of Congress and their approximately 25,000 aides. No Congress would mean no future congressional pensions. Since EVERY member of Congress seems to be such an expert., imagine the boost to the economy as these dedicated patriots are freed from the yoke of Congress and allowed to use their wisdom and experience in the private sector.
redietz
redietz
Joined: Jun 5, 2019
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July 10th, 2020 at 10:10:52 AM permalink
Quick pivot to Vegas shutting down. A friend just told me that CET is requiring their employees to be tested by next week or they won't be allowed to work.

I realized things were going to hell in Nevada, but this move suggests that some really bad situations have already come up that haven't exactly made the front page.

I mean, really, if you test positive with a private doctor and decide to not tell anyone, what can employers do? So I assume for this to have teeth, CET has to oversee the testing or have legal access to results? How does that work?
"You can't breathe dead hippo waking, sleeping, and eating, and at the same time keep your precarious grip on existence."

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