Tax suggestion……?

Deal Score0

Everyone wants the income tax breaks to end for the rich, but here’s the problem. They’re already rich so they’re probably working for $ 1 a year (on paper) and buying everything through their companies. Therefore, they would pay no income taxes. I believe that only businesses should pay income taxes. We could then shrink the IRS exponentially, thus saving the government millions of dollars every year. Then we could increase sales tax by 7 or 8 cents and everyone would pay exactly the same amount on taxes. And we could still have a tax break for mortgage loans by issuing a discounted sales tax to people who are buying homes. Using their drivers license, state ID or military ID, we could swipe them at checkout and the proper sales tax would be applied to each individual.

Do you believe this would work? Why or why not?

4 Comments
  1. Reply
    tro
    May 3, 2011 at 8:11 am

    probably any system that would be more fair, easier to administer etc would be better but trying to get Congress and the various factions that influence legislation to change is a huge task!

  2. Reply
    Judy
    May 3, 2011 at 8:47 am

    Not likely to work for a number of reasons. Start with the fact that sales tax today is state and local level, so a federal sales tax would need a whole new beaurocracy to administer, whether you called it the IRS or something else. And to equal today’s revenue, the tax would have to be several times your proposed 7-8%.

    And your assumption that the rich don’t pay tax is not correct. They pay most of the tax collected.

  3. Reply
    Bob F
    May 3, 2011 at 9:35 am

    Taxing corporations more would cause them to raise prices (or hire less). It could work, but it wouldn’t necessarily make individuals any better off.

  4. Reply
    Bobbie
    May 3, 2011 at 10:25 am

    Every one can have their own dream world in their own way of thinking.
    No it would not work as well as the current system does and would create more local problems also.
    Hope you find the above information useful for you situation and good luck to you.

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