Tax Idea (Revealed)
After listening to some crazy man mumble in the school cafÃé about how bad government is and how stupid we Americans are, I've decided to go ahead and tell you of this wonderful tax idea that I had (stolen from Harrison most likely).
So here is the scenario: You get your check from your work, "Maydup Biznass." Congrats, you made $500 dollars this pay period, but you find out that $100 of your money has been taken out due to taxes. $50 of which is a combination of state and federal taxes. That leaves you with a spendable income of $400. You get paid $500 every two weeks (so I guess that "Congrats" wasn't needed) which means that $1,300 of your dollars a year go to paying taxes. (Some of which you get back.)
My proposal is this: replace a deduction from our checks with increased sales tax. I love saying "increase sales tax" because it is almost like a dirty word. You say it and people automatically hate you.
Okay, so what this means and why it is really good thing. Let's say that you know get that $50 back for every check ($100 more spendable income every month and around $1,300 every year.) Now let's say that sales tax has been increased from 7% to 20%. That means for every dollar that a product costs you pay 20 cents. (Ex. if you buy a pony for $500 tax would be $100. Total of $600) This sounds terrible at first because you are spending more money out right, but the benefits that I can see are great. Let's say you spend $300 on taxable items in one month, that means that you only paid $60 in taxes as opposed to your $100 that you normally spend. You are only taxed on what you buy. You don't want to pay a lot of taxes? Then don't buy a lot of junk.
The idea behind this is that we take the burden off the "rich." With tax brackets we have taken this "Robin Hood, Take from the rich, give to the poor idea" a bit far. Robin Hood was taking from those who were unjust. We blame the movie stars for being rich, when we are the ones that give away our money for entertainment, etc. etc.
Back to the benefits: So you think, "Wait, if I am paying $40 less a month wouldn't that mean that everyone is paying less? Wouldn't the government get less money?" Not really. You have to take into account the general principal that people spend more when they have more. More spendable income means more spending. This also means that people that are outside the IRS radar still pay taxes. All the "illegals" pay taxes, also anyone that asks you for spare change will be paying taxes when they go to get a taco. This new system would also make it difficult to swindle the IRS, because a simple presumption is that if you live, you consume, if you consume, you pay, if you pay you pay taxes.
And the good news for some of you is that the rich would still be paying more taxes.
*This tax idea deals solely with federal and state taxes on the individual, and not necessarily taxes on
businesses.
Now I have a final. I may talk about this later.
So here is the scenario: You get your check from your work, "Maydup Biznass." Congrats, you made $500 dollars this pay period, but you find out that $100 of your money has been taken out due to taxes. $50 of which is a combination of state and federal taxes. That leaves you with a spendable income of $400. You get paid $500 every two weeks (so I guess that "Congrats" wasn't needed) which means that $1,300 of your dollars a year go to paying taxes. (Some of which you get back.)
My proposal is this: replace a deduction from our checks with increased sales tax. I love saying "increase sales tax" because it is almost like a dirty word. You say it and people automatically hate you.
Okay, so what this means and why it is really good thing. Let's say that you know get that $50 back for every check ($100 more spendable income every month and around $1,300 every year.) Now let's say that sales tax has been increased from 7% to 20%. That means for every dollar that a product costs you pay 20 cents. (Ex. if you buy a pony for $500 tax would be $100. Total of $600) This sounds terrible at first because you are spending more money out right, but the benefits that I can see are great. Let's say you spend $300 on taxable items in one month, that means that you only paid $60 in taxes as opposed to your $100 that you normally spend. You are only taxed on what you buy. You don't want to pay a lot of taxes? Then don't buy a lot of junk.
The idea behind this is that we take the burden off the "rich." With tax brackets we have taken this "Robin Hood, Take from the rich, give to the poor idea" a bit far. Robin Hood was taking from those who were unjust. We blame the movie stars for being rich, when we are the ones that give away our money for entertainment, etc. etc.
Back to the benefits: So you think, "Wait, if I am paying $40 less a month wouldn't that mean that everyone is paying less? Wouldn't the government get less money?" Not really. You have to take into account the general principal that people spend more when they have more. More spendable income means more spending. This also means that people that are outside the IRS radar still pay taxes. All the "illegals" pay taxes, also anyone that asks you for spare change will be paying taxes when they go to get a taco. This new system would also make it difficult to swindle the IRS, because a simple presumption is that if you live, you consume, if you consume, you pay, if you pay you pay taxes.
And the good news for some of you is that the rich would still be paying more taxes.
*This tax idea deals solely with federal and state taxes on the individual, and not necessarily taxes on
businesses.
Now I have a final. I may talk about this later.
posted by Taylor Mosbey | 9:40 AM
2 Comments:
what about people that have to spend more then a hundred in taxes like for example people with medication what if they spend a thousand in medication a month and thats not on top of regular exspences like food and other things so in a way you would hurt people that have to spend more and usally thoes people are in most dire need of more money anyways i just wanted to give you a hard time a burst your bubble
The tax could be on "luxury" items, or nonmedicinal items. You are also forgeting that insurance companies pay for a large share of medical items anyway so that the "poor" people won't have to pay more than they can afford. And don't forget, they are also "getting more spendable income" every month. Think harder. Then burst my bubble.
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