There should be no sales tax to begin with, Or income tax or property tax.... Most taxes can be simplified and reduced to a 1 simple wealth tax.
If you look at this matters with some attention you realize system works against poor...
Only income taxes are progressive. And Rich don't get richer because of their income.
Whether you're a trillion dollar company or about to make your first sale to pay rent you owe same amout of sales tax.
Wether you live in NYC and pay 3k in rent or live in Alaska you pay same federal income tax.
.... Wealth tax is way simpler... It let's govt tax wealth/income on its last form. Like a fraction in reduced form, or equation that's been simplified.
Easier to conduct business, easier to start business, easier to pay taxes, easier to be poor. Much much fair to all.
Capital tax is not same as wealth tax. In fact if you have wealth tax there is no need for capital tax.
I suggest 4% wealth tax and remove pretty much all other taxes.
If your wealth is 200 billion, first year you pay 8 billion.
If your wealth is $5000 then you pay only.. $200, doesn't matter if you earned 400k. If you didn't accquire assets you spent it and some else have that now so they will pay it...if you bought stuff then your wealth isn't really 5k
This disincentives savings and is in many ways the opposite of VAT taxes, which many tax scholars hold out as one of the most efficient ways to raise revenue without distorting desirable economic behavior.
The incentive to be wealthy is far more greater than 4% tax on wealth could be a disincentive. Beauty of this is you only pay if you are rich, not if you are poor or even if you earn a lot and still have lot of expenses (medical, live in nyc, or have children etc)
A perpetual 4% tax on wealth is a great disincentive to saving. It's like compounding interest, but in reverse.
I would be curious to know if any politician or scholar has ever proposed relying on a single tax like this? I studied tax in law school and practiced as a tax lawyer for the better part of a decade, and I have never heard it mentioned. I'm not up on all the latest developments since I left law to build a startup, and I'd be curious to know if things are leaning in this direction now.
you say that but then what about inflation .. that is worse than 4% tax now as it hurts poor more whose most savings are in cash form, and inflation doesn't really affect say land value, it automatically adjusts. While person with $3k saving becomes poorer.
I forgot to add... to me ideal is this.
- no artificial inflation.
- fixed currency rate.
- taxes on wealth only.
- interest free limited loan by government. (ie. you can borrow x amount of money in lifetime, x increases if your wealth increases)
That's perfect to me.
The only system that can't be endlessly manipulated by conglomerate/old money/corporations/lobbyists.
If you look at this matters with some attention you realize system works against poor...
Only income taxes are progressive. And Rich don't get richer because of their income.
Whether you're a trillion dollar company or about to make your first sale to pay rent you owe same amout of sales tax.
Wether you live in NYC and pay 3k in rent or live in Alaska you pay same federal income tax.
.... Wealth tax is way simpler... It let's govt tax wealth/income on its last form. Like a fraction in reduced form, or equation that's been simplified.
Easier to conduct business, easier to start business, easier to pay taxes, easier to be poor. Much much fair to all.
Capital tax is not same as wealth tax. In fact if you have wealth tax there is no need for capital tax.
I suggest 4% wealth tax and remove pretty much all other taxes.
If your wealth is 200 billion, first year you pay 8 billion. If your wealth is $5000 then you pay only.. $200, doesn't matter if you earned 400k. If you didn't accquire assets you spent it and some else have that now so they will pay it...if you bought stuff then your wealth isn't really 5k